News Nuggets | 30 October: HSBC's $3B Share Buyback; Railsr $24M Funding Round

HSBC Reports Surge in After-Tax Profit

HSBC reported a significant increase in its after-tax profit, which came in at $6.26 billion for the quarter ending in September, marking a 235% increase compared to the same period last year. The surge was mainly attributed to a higher interest rate environment. Despite the impressive figures, HSBC fell short of economists' expectations.

The bank also announced a share buyback of $3 billion. The boost in profit was partly due to a $2.3 billion impairment related to the planned sale of its retail banking operations in France, which was later reversed. HSBC's revenue further rose to $7.71 billion, up from $3.23 billion a year ago.

UK Fintech Railsr Secures $24 Million in Funding

Railsr, a UK-based fintech startup, has secured $24 million in its latest funding round Funding Round Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Read this Term. The company was saved from collapse seven months ago by an investor consortium and underwent a management reshuffle. Railsr, initially known as Railsbank, has raised over $180 million in total and was once valued near $1 billion. However, the valuation has since dropped to around $250 million. The company additionally had its license revoked in Lithuania and is now seeking a license in France.

The latest funding round included long-time investors D Squared Capital and Moneta Venture Capital. The new CEO, Philippe Morel expressed optimism about the company's future, acknowledging the challenges faced by the fintech sector. He emphasized that the new investment sets the stage for the company to achieve sustainable growth.

Laser Digital and Nomura Debut in The Sandbox Metaverse

Laser Digital Holdings AG, in collaboration with Nomura Holdings, Inc., has launched the 'Nomura & Laser Digital Botanical Garden' in The Sandbox metaverse. The experience is part of The Sandbox Fall Event and aims to accelerate Nomura's innovations in the digital asset sector.

The virtual garden features quests and QR codes that provide information about the companies' digital asset strategies.

“The Sandbox enables renowned financial and digital asset institutions such as Nomura to experiment creatively and appeal to a broader audience,” said Sebastien Borget, the COO and Co-Founder of The Sandbox. “We’re pleased to see Nomura and Laser Digital step into Web3 and take users on a spiritual, immersive journey where they will experience digital innovation through a combination of architecture, Japanese culture and quests.”

FMA Completes 2022 Re-licensing of Financial Supervisors

The Financial Markets Authority (FMA) in New Zealand has completed its third licensing process for Supervisors overseeing specific financial products like KiwiSaver schemes and superannuation schemes. The assessment considered various factors, including compliance with the Financial Markets Supervisors Act 2011 and feedback from ongoing monitoring. All five applicants were re-licensed for another five years, demonstrating their capability to perform supervisory functions effectively.

The FMA noted improvements in monitoring practices and board governance. However, it identified areas for further improvement, such as refining risk-based monitoring approaches, enhancing governance arrangements, and better resource capacity planning. The FMA is committed to ongoing engagement with supervisors to ensure they adapt to evolving sector needs and regulatory expectations.

Financial Services Companies Charged for Failing to Lodge Financial Accounts

Two financial services companies, APC Securities Pty Ltd and Brava Capital Pty Ltd, have been charged with multiple criminal offenses for failing to lodge financial accounts with the Australian Securities and Investments Commission (ASIC). Both companies are connected to Sydney businessman David Sutton who has been banned from providing any financial services. The companies failed to lodge their financial accounts and auditor’s report for each of the financial years from 2020 to 2022.

The charges come as part of ASIC's increased focus on enforcing financial reporting obligations. Both cases have been adjourned until November 21, 2023, for further proceedings. The maximum penalty for each failure to lodge the required documents is $1,332,000.

MAS Cyber Security Advisory Panel Discusses Mobile Malware and AI Risks

The Monetary Authority of Singapore’s (MAS) Cyber Security Advisory Panel held its seventh annual meeting to discuss global cybersecurity trends affecting the financial sector. The panel emphasized the need for a multi-pronged approach to tackle mobile malware scams and supported adopting advanced authentication methods for mobile banking. On top of that, they discussed the growing adoption of Generative AI in financial institutions and the associated risks.

The panel suggested AI-enabled solutions to enhance cybersecurity Cybersecurity Cybersecurity is a blanket term that refers to the protection of computer systems and networks from the theft.More broadly speaking, cybersecurity can also represent countermeasures against damage to hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide.It was not long ago that the term cybersecurity not exist as it was first used in 1989. In today’s vernacular cybersecurity, refers to measures taken to protect a computer or computer Cybersecurity is a blanket term that refers to the protection of computer systems and networks from the theft.More broadly speaking, cybersecurity can also represent countermeasures against damage to hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide.It was not long ago that the term cybersecurity not exist as it was first used in 1989. In today’s vernacular cybersecurity, refers to measures taken to protect a computer or computer Read this Term capabilities. The meeting was part of a two-day event that included a Technology and Cyber Risk Seminar, jointly organized by The Association of Banks in Singapore and MAS.

Court Extends Deadline for Maxim Fund Investors

The Court of First Instance has extended the deadline for investors to make claims related to investment schemes operated by Maxim Capital Limited and Maxim Trader in Hong Kong. The Securities and Futures Commission had initially set the cut-off date in July 2022 but decided to extend it after receiving new inquiries from investors.

The new cut-off date is 30 November 2023. The court's decision aims to balance the interests of all stakeholders involved in the case.

MAS Partners with Global Policymakers for Digital Asset Innovation

MAS is partnering with financial regulators from Japan, Switzerland, and the UK to advance digital asset pilots. Under MAS' Project Guardian, the partnership aims to discuss the legal, policy, and accounting treatment of digital assets and identify potential risks.

The group also plans to develop common standards for digital asset networks and promote high standards of interoperability. The Deputy Managing Director of MAS, Mr Leong Sing Chiong, expressed that the partnership aims to support the sustainable growth of the digital asset ecosystem.