Archive for year: 2018

1. SFC bans Lok Wai Fong for life
2. Court of Final Appeal allows SFC’s appeal against MMT decision on insider dealing in Asia Telemedia Limited shares
3. SFC concludes consultation on amendments to anti-money laundering and counter-financing of terrorism guidelines
4. SFC encourages the public to report fraud and misconduct

1.     SFC bans Lok Wai Fong for life

On 8 October 2018, the SFC banned Ms Lok Wai Fong, a former employee of Bank of China (Hong Kong) Limited, from re-entering the industry for life.

The disciplinary action follows an SFC investigation which found that from April 2009 to January 2012, Lok transferred a sum of around HK$1.6 million from the savings account of a customer to the bank account of a securities firm, without his knowledge and authorization.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR115

For a copy of the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR115&appendix=0

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2.      Court of Final Appeal allows SFC’s appeal against MMT decision on insider dealing in Asia Telemedia Limited shares

On 12 October 2018, the Court of Final Appeal (“CFA”) allowed the SFC’s appeal against the Market Misconduct Tribunal’s findings that two former executives of Asia Telemedia Limited (now known as Yunfeng Financial Group Limited), Mr Charles Yiu Hoi Ying and Ms Marian Wong Nam, had not engaged in insider dealing.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR120

For the CFA judgment, please refer to:

https://legalref.judiciary.hk/lrs/common/ju/ju_frame.jsp?DIS=117866&currpage=T

For the report on the MMT decision, please refer to:

http://www.mmt.gov.hk/eng/reports/Report_of_ATML_e.pdf

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3.      SFC concludes consultation on amendments to anti-money laundering and counter-financing of terrorism guidelines

On 12 October 2018, the SFC released consultation conclusions on proposals to amend its Guideline on Anti-Money Laundering and Counter-Terrorist Financing (“AML/CFT Guideline”).

The amendments are in line with the latest international anti-money laundering and counter-financing of terrorism standards and will make the AML/CFT Guideline more useful and relevant in light of industry developments.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR119

For the consultation conclusions, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/consultation/conclusion?refNo=18CP6

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4.      SFC encourages the public to report fraud and misconduct

On 18 October 2018, the SFC introduced new features on its website to make it easier for the public to report suspected corporate fraud and market misconduct as well as information about persons who may help the SFC in its investigations.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR121

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1. Market Misconduct Tribunal finds China AU’s former CEO and related persons culpable of market manipulation
2. SFC bans Cham Nga Yin for life
3. Court sets pre-trial date for false or misleading announcement case
4. Consultation Paper on the Proposed Guidelines for Securities Margin Financing Activities
5. SFC reprimands and fines HPI Forex Limited HK$2 million for regulatory breaches
6. SFC bans Fonia Kwok Lai Kwan for 12 months

1.     Market Misconduct Tribunal finds China AU’s former CEO and related persons culpable of market manipulation

On 7 August 2018, the Market Misconduct Tribunal (“MMT”) has found that Ms Samantha Keung Wai Fun, former CEO of China AU Group Holdings Limited (“China AU”), her friend Ms Wu Hsiu Jung and a business partner Mr Chen Kuo Chen, engaged in market misconduct by false trading in the shares of China AU following proceedings brought by the SFC.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR93

For a copy of the SFC’s Notice commencing the MMT proceedings, please refer to:

http://www.mmt.gov.hk/eng/reports/Report_of_SkyNet_(China_AU)_PartI_e.pdf

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2.      SFC bans Cham Nga Yin for life

On 9 August 2018, the SFC has banned Ms Cham Nga Yin from re-entering the industry for life for misappropriation of clients’ money. Cham was a former licensed representative of Tanrich Futures Limited, now known as Southwest Securities (HK) Futures Limited.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR94

For a copy of the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR94&appendix=0

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3.     Court sets pre-trial date for false or misleading announcement case

On 9 August 2018, the Eastern Magistrates’ Court adjourned the criminal proceedings brought by the SFC against Mr Chan Wai Chuen, former director of DBA Telecommunication (Asia) Holdings Limited (“DBA”), to 27 September 2018 for a pre-trial review after he pleaded not guilty to a charge of making a false or misleading statement in relation to the results announcement issued by DBA on 28 March 2013.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR95

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4.     Consultation Paper on the Proposed Guidelines for Securities Margin Financing Activities

On 17 August 2018, the SFC published a Consultation Paper on the Proposed Guidelines for Securities Margin Financing Activities.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/consultation/openFile?refNo=18CP7

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5.     SFC reprimands and fines HPI Forex Limited HK$2 million for regulatory breaches

On 22 August 2018, the SFC has reprimanded and fined HPI Forex Limited HK$2 million for mis-handling client money.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR98

For a copy of the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR98&appendix=0

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6.     SFC bans Fonia Kwok Lai Kwan for 12 months

On 27 August 2018, the SFC has banned Ms Fonia Kwok Lai Kwan from re-entering the industry for 12 months from 25 August 2018 to 24 August 2019 following her conviction for unlicensed asset management.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR100

For a copy of the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR100&appendix=0

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1. SFC commences MMT proceedings against China Forestry’s former chairman and CEO for suspected disclosure of false or misleading information and former CEO for suspected insider dealing
2. DBA Telecommunication (Asia) Holdings Limited convicted of making false or misleading announcement
3. SFC reprimands and fines CCB International Capital Limited HK$24 million for sponsor failures
4. SFC reprimands and fines Citigroup Global Markets Asia Limited HK$4 million for alternative liquidity pool failures
5. SFC bans Joseph Hsu Kar Hing for three years
6. SFC bans Poon Chun Hing for 30 months
7. SFC reprimands and fines HSBC Broking Securities (Asia) Limited HK$9.6 million for regulatory breaches over bond sale
8. Broker acquitted of illegal short selling
9. Account executive convicted and fined for illegal short selling
10. SFC publicly censures Liang Guosheng and imposes a cold-shoulder order for breach of the Takeovers Code

1.     SFC commences MMT proceedings against China Forestry’s former chairman and CEO for suspected disclosure of false or misleading information and former CEO for suspected insider dealing

On 28 June 2018, the SFC has commenced proceedings in the Market Misconduct Tribunal against Mr Li Kwok Cheong and Mr Li Han Chun, former chairman and chief executive officer of China Forestry Holdings Company Limited (“China Forestry”), respectively, for suspected disclosure of false or misleading information in (1) China Forestry’s IPO prospectus, (2) its annual results announcement and annual report for the year ended 31 December 2009 and (3) interim results announcement and interim report for the six months ended 30 June 2010, which induced transactions in the shares of China Forestry.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR72

For a copy of the SFC’s Notice commencing the MMT proceedings, please refer to:

http://www.mmt.gov.hk/eng/rulings/China_Forestry_28062018_e.pdf

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2.      DBA Telecommunication (Asia) Holdings Limited convicted of making false or misleading announcement

On 28 June 2018, the Eastern Magistrates’ Court convicted DBA Telecommunication (Asia) Holdings Limited after it pleaded guilty to making a false or misleading statement in a prosecution brought by the SFC.

DBA’s statement in the results announcement that the financial statements had complied with applicable disclosure provisions of the Listing Rules was false and misleading in a material particular.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR73

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3.     SFC reprimands and fines CCB International Capital Limited HK$24 million for sponsor failures

On 9 July 2018, the SFC has reprimanded and fined CCB International Capital Limited HK$24 million for failing to discharge its duties as the sole sponsor in the listing application of Fujian Dongya Aquatic Products Co., Ltd in 2013 and 2014.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR77

For a copy of the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR77&appendix=0

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4.    SFC reprimands and fines Citigroup Global Markets Asia Limited HK$4 million for alternative liquidity pool failures

On 10 July 2018, the SFC has reprimanded and fined Citigroup Global Markets Asia Limited (“CGMAL”) HK$4 million over CGMAL’s regulatory breaches in relation to the operations of its alternative liquidity pool. Particularly, due to an incorrect system setting of client profiles, over 130 clients had accessed Citi Match without being assessed whether they were qualified investors.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR78

For a copy of the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR78&appendix=0