The Securities and Futures Commission of Hong Kong (SFC) recently issued a circular outlining the monitoring measures to be implemented when opening accounts and maintaining customer relationships. It is reported that the Hong Kong Securities and Futures Commission has recently reviewed the account opening practices of 12 securities brokerage firms. The inspection identified multiple significant deficiencies, including insufficient due diligence on account opening documents, acceptance of suspicious or forged documents during the account opening process, and weaknesses in managing cross-border agency relationships with overseas intermediaries. The Hong Kong Securities and Futures Commission expressed deep concern over the possibility of improper use of customer accounts and requested all licensed corporations to conduct internal audits as soon as feasible. The circular requires licensed corporations to comply with all relevant laws and regulatory requirements of Hong Kong and relevant jurisdictions when providing services directly or through affiliated parties, third-party service providers, or intermediaries outside Hong Kong to investors outside Hong Kong, and should not engage in or facilitate any illegal activities. The circular specifically states that licensed corporations should pay attention to the notice jointly issued by the China Securities Regulatory Commission and other mainland institutions on May 22, 2026, which specifies the rectification plan for certain illegal cross-border securities, futures, and investment fund related activities conducted in mainland China. Ye Zhiheng, Executive Director of the Intermediary Department of the Hong Kong Securities and Futures Commission, stated that a zero tolerance attitude will be taken towards serious monitoring errors and the use of forged documents during the account opening process. Resolute regulatory and enforcement actions will be taken against relevant licensed corporations and their senior management to maintain a clean, stable, and fair competitive environment in the market. In addition, the Hong Kong Securities and Futures Commission has also listed additional measures for licensed corporations to open and manage relevant accounts for mainland investors. These additional measures include closing investment accounts opened with suspicious or forged documents, closing zero balance real estate investment accounts, and requiring written statements from investors when opening new investment accounts, and requiring that settlement and fund withdrawals only be made through bank accounts held in the name of the customer in qualified banks. The China Securities Regulatory Commission (CSRC) announced on the 22nd that recently, with the approval of the State Council, eight departments including the CSRC jointly issued the "Implementation Plan for Comprehensive Rectification of Illegal Cross border Securities and Futures Fund Operation Activities", which clarifies the comprehensive crackdown on illegal cross-border business activities of overseas securities and futures fund operation institutions after two years of concentrated rectification. (Looking into the New Era)