#4 Insights into the China Market

26 November 2018 by Maxime Poriel

Looking at how the Chinese government have coordinated their efforts to significantly and progressively ease market access suggests that China is carefully creating a network of hubs within Asia and Europe that can prosper along with the spread of its currency. The launch of foreign institutional investor initiatives are being viewed as a strong growth opportunity for China.

What are the opportunities for you and what do you need to consider before acting?

IFRS 16

21 November 2018 by Maxime Poriel

The countdown has begun for banks to meet operational implementation’s deadline of IFRS 16 (January 1st, 2019). Are you on track?

Here is a short memo to remind you of the requirements of this new standard.

Global Systemically Important Banks

19 November 2018 by Maxime Poriel

The 2018 list of Global Systemically Important Banks (G-SIBs) has just been published by the FSB last Friday (11/16). Here are more insights from Aurexia, to highlight:

– The challenges related to the implementation of G-SIBs indicators’ calculation, taking into account business lines specificities

– The monitoring of G-SIBs footprint at granular level to ensure a better management of financial resources

Cognitive search and credit risk

7 November 2018 by Maxime Poriel

Cognitive search can reinforce any area of risk management where essential data is heterogenous, information rich, and moving fast. We have already demonstrated its high value added in several areas of credit risk.

Do you want to see how cognitive search can increase efficiency of your processes while enhancing both integrity and robustness?

Putting your processes on a joint, enriched information platform such as Sinequa can do that, and Aurexia Finlab can show you how.

EU-Wide stress test

5 November 2018 by Maxime Poriel

EBA has disclosed Friday November 2nd the results of 2018 stress tests. This exercise takes into account IFRS9 requirements. Besides, it is not designed as a pass-fail test but as an input of the SREP. Aurexia has published a document containing 2018 requirements and main changes.

Operational Risk & Resiliency

31 October 2018 by Maxime Poriel

Basel IV requirements & operational resilience framework: Operational Risk future is getting severely challenged.

General Data Protection Regulation

29 October 2018 by Maxime Poriel

The “Commission Nationale pour la Protection des Données” published on its website “the first feedback on data violations”. Here are some figures of the results of this survey:

• 97 data violations were reported between May 25th, 2018 and September 27th, 2018 in Luxembourg (with a downward trend since August -33% compared to July);
• 56% of incidents are related to human errors (handling errors / carelessness errors / non-compliance with the organization’s security policy), such as the uncontrolled transfer / authorization of the organization’s customer data by the employee to his or her personal computer or a third-party webmail service to work from home; the second significant cause of incidents is related to piracy (hacking, phishing) and theft (computer hardware, paper);
• 19% of data violations reported during these 4 months are considered to have a level of severity of potential impact for the persons concerned as “significant” and “maximum”.

Failure to comply with the GDPR requirements can not only have significant impacts on your clients but can also result in severe penalties for your organization (Art 77 to 84).

Need some help? Aurexia Luxembourg is here to help you in bringing your organization into compliance with the GDPR’s obligations.

#3 Insights into the China Market

26 October 2018 by Maxime Poriel

Does the prospect of having controlling ownership entice firms to enter the market? A recent change in regulations in 2018 has allowed foreign securities, insurance and asset management firms in joint ventures with local Chinese firms to hold up to 51% stake. Early market sentiments have been mostly positive, with some firms already in JVs looking to increase their stakes, and others looking to enter the market.

What are the opportunities for you and what do you need to consider before acting?

#2 Insights into the China Market

18 October 2018 by Maxime Poriel

Prior to 2002, foreign investors’ access to China’s domestic capital markets and domestic investors’ access to offshore markets has been hindered by tight regulatory and capital controls. Since then, China has gradually introduced a range of liberalization measures and further strengthened its commitment to significantly easing market access.

Interested to learn more on the different institutional investor schemes in China? Aurexia Institute team have shared an extract from our study “Insights into China.”

#1 Insights into China Market

12 October 2018 by Maxime Poriel

Aurexia’s regulatory experts have delved deeply into the latest initiatives from China which contributed to the opening of its markets and the inflows and outflows of capital investment into its economy. We have produced a study titled “Insights into China”, and this production is the first glance at it.

On 30^th July 2018, the Open-Ended Fund Company (OFC) structure regime came into force. The latest initiative by the Securities’ & Futures Commission of Hong Kong to inject some fuel into its wealth management industry by providing fund managers an alternative option to structure their funds.

There are four core benefits of this fund structure:

1. Corporate Fund Structure – Allowing investment managers an alternative fund structure which they can utilize based on their investment objectives and requirements of their clients
2. Tax Exemption Incentives – Both public and private OFCs will be able to qualify for tax exemption incentives provided they fulfil a set of requirements
3. Umbrella Structure for funds – Flexibility to organize investment fund as an umbrella fund, which can cater for broad investment objectives, with increased attractiveness to a wider spectrum of investors.
4. Single Jurisdiction presence – Fund managers who domicile and distribute funds in Hong Kong will not have to worry about the implications and considerations of legal and regulatory aspects of an offshore domiciled location and onshore distribution.