APAC Legal Developments in Private Wealth - January 2022

Every month ten Asian jurisdictions are surveyed for legal developments concerning trust and estate planning which are of interest to the private wealth industry

FREMONT, CA: In a monthly study, ten Asian jurisdictions are examined for recent developments in trust and estate planning relevant to the private wealth industry, and a concise summary is provided. Hong Kong, Singapore, China, Taiwan, Japan, India, Malaysia, Indonesia, Thailand, and the Philippines are among the jurisdictions covered in the update. It is believed that these updates will be a useful resource for keeping individual clients, business persons, and lawyers up to date on legal developments in the region.

After considering international recommendations, local and foreign market and regulatory landscapes, and the characteristics of stable coins, the Hong Kong Monetary Authority (HKMA) issued a discussion paper on 12 January 2022 providing an outline on its thought process regarding the regulatory approach for crypto-assets, particularly payment-related stable coins. The HKMA is inviting the public to submit their suggestions by March 31, 2022.

The HKMA issued a circular to Authorized Institutions (AIs) highlighting their significant success in moving from the London Interbank Offered Rate (LIBOR) to other reference rates, as well as the fact that AIs remediated the vast majority of LIBOR-related contracts. AIs were urged to maintain momentum in migrating away from the remaining LIBOR settings by June 30, 2023.

In its frequently asked questions (FAQs) on real estate investment trusts, the Securities and Futures Commission (SFC) revised questions 19 and 60 and added question 53A. (REITs). The FAQs are intended to offer market practitioners basic information about REIT authorization under the Code on Real Estate Investment Trusts (REIT Code). The changes affect whether SFC-authorized REITs must follow the Corporate Governance Code and publish ESG reports as part of the listing rules, as well as whether an accountants' report prepared following REIT Code 7.6 is required for circulars for all notifiable or connected party transactions involving a special purpose vehicle.

The Insurance Authority (IA) published a note on the Green Light Process for Assessing Investment-Linked Assurance Scheme (ILAS) Products against Standards in Guideline on Underwriting Class C Business (GL15), ushering in Protection Linked Plans (PLPs), a new type of ILAS with built-in high levels of insurance protection. The purpose of the note is to formalize the procedure by which the IA examines an ILAS product against specified GL15 requirements before the authorized insurer can apply to the SFC for ILAS product authorisation.