Newsletter – September 2015

Content

  1. SFC’s Interim Head of Enforcement
  2. Notice to compensation claimants
  3. Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Terrorist Financing: (1) United Nations (Anti-Terrorism Measures) Ordinance; (2) US President’s Executive Order 13224
  4. Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Terrorist Financing United Nations (Anti-Terrorism Measures) Ordinance

1. SFC’s Interim Head of Enforcement

On 18 September 2015, the Securities and Futures Commission (“SFC”) has appointed Ms Maureen Garrett (“Ms Garrett”), Deputy Chief Counsel of the SFC, as Interim Head of Enforcement.

Background

Ms Garrett will oversee the Enforcement Division pending the completion of a global recruitment exercise to replace Mr Mark Steward who will leave the SFC to take up a similar position with the UK’s Financial Conduct Authority.

She joined the Legal Services Division of the SFC in 1999. She has deep experience leading the SFC’s enforcement litigation work in Hong Kong’s courts and tribunals and in that capacity has worked closely with the Enforcement Division over many years.

Mr Ashley Alder, the SFC’s Chief Executive Officer, said: “Maureen’s interim appointment will ensure that our enforcement work will continue to operate at full strength pending the appointment of a permanent replacement for Mark.”

For details, please refer to:
http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=15PR89

2. Notice to compensation claimants

On 23 September 2015, the SFC issues a notice to investors who were counterparties of convicted futures trader Mr Tsoi Bun (“Mr Tsoi”) but have not come forward to receive compensation under an order made by the Court.

Background

Mr Tsoi was convicted of false trading and/or price rigging on the futures market. In 2014 he was ordered to pay over HK$13 million into the Court to compensate each of the counterparties to his false trading and/or price rigging.

Despite attempts by the Administrators to locate all counterparties, 207 investors have not come forward and about HK$4.6 million remains unclaimed.

These counterparties are advised to follow the steps set out in the notice if they wish to receive compensation. The notice can be found at
http://www.sfc.hk/web/EN/files/ER/PDF/Final%20notice%20to%20compensation%20claimants%20Tsoi%20Bun%20PR_20150923_final.pdf

For details, please refer to:
http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=15PR88

3.  Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Terrorist Financing: (1) United Nations (Anti-Terrorism Measures) Ordinance; (2) US President’s Executive Order 13224

(1)  United Nations (Anti-Terrorism Measures) Ordinance 

Further to the circular issued on 28 August 2015 (http://www.sfc.hk/edistributionWeb/gateway/EN/circular/doc?refNo=15EC46), an updated list specifying terrorists and terrorist associates designated by the United Nations Security Council (“UNSC”) was published under section 4 of the United Nations (Anti-Terrorism Measures) Ordinance (“the UNATMO”) (Cap. 575) in the Gazette on 11 September 2015 (G.N. 6853 of 2015). The UNSC has issued a relevant press release reflecting the updates, which can be found on the SFC website (http://www.sfc.hk/edistributionWeb/gateway/EN/circular/openAppendix?refNo=15EC47&appendix=0).

The aforesaid list can be found on the Government’s website (http://www.gld.gov.hk/egazette/)

(2)  US President’s Executive Order 13224

Further to our circular issued on 28 August 2015, this is to inform you that the US Government has updated the list of designated individuals and entities issued under the US President’s Executive Order 13224 (“the Executive Order”). The updated information can be found on the website of the US Treasury (http://www.treasury.gov/resource-center/sanctions/Programs/Documents/terror.pdf) under the headings of  “Name of entity removed on 9-3-15”, “Names of individuals added on 9-8-15”, “Name of individual added on 9-9-15”, “Name of entity added on 9-10-15” and “Names of individuals added on 9-10-15”. As the designated individuals and entities under the Executive Order may be updated by the US Government from time to time, licensed corporations (“LCs”) and associated entities (“AEs”) are reminded to browse the website of the US Treasury regularly for the latest information.

LCs and AEs should check the names in the above list against their records, and report any transactions or relationships they have or have had with the named persons or entities to the Joint Financial Intelligence Unit.

Furthermore, LCs and AEs are reminded to refer to Chapter 6 of the Guideline on Anti-Money Laundering and Counter-Terrorist Financing (“AML Guideline”) which contains guidance on the appropriate measures that LCs and AEs should take to ensure compliance with the UNATMO and the Executive Order.

Queries regarding the contents of this circular should be forwarded to Ms Kiki Wong at 2231 1569
For details, please refer to:
http://www.sfc.hk/edistributionWeb/gateway/EN/circular/doc?refNo=15EC47

4.  Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Terrorist Financing United Nations (Anti-Terrorism Measures) Ordinance

United Nations (Anti-Terrorism Measures) Ordinance

Further to our circular issued on 11 September 2015, an updated list specifying terrorists and terrorist associates designated by the United Nations Security Council (“UNSC”) was published under section 4 of the United Nations (Anti-Terrorism Measures) Ordinance (“the UNATMO”) (Cap. 575) in the Gazette on 18 September 2015 (G.N. 7002 of 2015). A relevant press release issued by the UNSC, reflecting the updates since the previous list was published in the Gazette (G.N. 6853 of 2015).

The aforesaid list can be found on the Government’s website (http://www.gld.gov.hk/egazette/).

For further details, please refer to:
http://www.sfc.hk/edistributionWeb/gateway/EN/circular/doc?refNo=15EC48

The article is for general information purpose only and is not intended to constitute legal or other professional advice.

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