Regulatory News (Oct 2018)

Regulatory News (Sep 2018)

Newsletter – September 2018

Content
  1. Court of Final Appeal dismisses Moody’s appeal
  2. Court of Appeal orders retrial in insider dealing case
  3. SFC reprimands and fines Huatai Financial Holdings (Hong Kong) Limited HK$800,000 over naked short selling
  4. SFC bans Ngo Wing Chun for 12 months

1.     Court of Final Appeal dismisses Moody’s appeal

On 3 September 2018, the Court of Final Appeal dismissed the appeal of Moody’s Investors Service Hong Kong Limited (“Moody’s”) in relation to the SFC’s disciplinary action concerning a special comment report Moody’s published in 2011.

SFC has reprimanded Moody’s and fined it HK$11 million for various failures relating to its preparation and publication of the special comment report entitled “Red Flags for Emerging-Market Companies: A Focus on China” published on 11 July 2011.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR101

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2.      Court of Appeal orders retrial in insider dealing case

On 11 September 2018, the Court of Appeal has allowed the SFC appeal against the Market Misconduct Tribunal’s (“MMT”) decision that Mr Cheng Chak Ngok, former executive director, chief financial officer and company secretary of ENN Energy Holdings Limited, had not engaged in insider dealing in the shares of China Gas Holdings Limited in 2011.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR105

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

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

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3.     SFC reprimands and fines Huatai Financial Holdings (Hong Kong) Limited HK$800,000 over naked short selling

On 17 September 2018, the SFC has reprimanded and fined Huatai Financial Holdings (Hong Kong) Limited HK$800,000 for failures relating to the short selling of Great Wall Motor Company Limited shares in 2015.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR106

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=18PR106&appendix=0

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4.     SFC bans Ngo Wing Chun for 12 months

On 20 September 2018, the SFC has banned Mr Ngo Wing Chun, a former relationship manager of Hongkong and Shanghai Banking Corporation Limited, from re-entering the industry for 12 months from 20 September 2018 to 19 September 2019 for unauthorized transfer of customer data.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR109

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

Receipt of this newsletter indicates that CompliancePlus has been using your email address to market to you the compliance services that CompliancePlus is able to provide you.

CompliancePlus provides compliance consulting services to financial companies, hedge fund managers and individuals. Our dedicated team of compliance officers has years of professional experience equipped with in-depth knowledge of both functional and compliance experience in managing and minimizing regulatory, operational and reputational risks. By partnering with CompliancePlus, our clients gain access to compliance solutions that they can trust and the latest knowledge of regulatory policies and procedures.

For enquiries, please email: info@complianceplus.hk or call at +852-3487 6903.

To subscribe, update your email address or unsubscribe, please email info@complianceplus.hk 

Newsletter – August 2018

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

Receipt of this newsletter indicates that CompliancePlus has been using your email address to market to you the compliance services that CompliancePlus is able to provide you.

CompliancePlus provides compliance consulting services to financial companies, hedge fund managers and individuals. Our dedicated team of compliance officers has years of professional experience equipped with in-depth knowledge of both functional and compliance experience in managing and minimizing regulatory, operational and reputational risks. By partnering with CompliancePlus, our clients gain access to compliance solutions that they can trust and the latest knowledge of regulatory policies and procedures.

For enquiries, please email: info@complianceplus.hk or call at +852-3487 6903.

To subscribe, update your email address or unsubscribe, please email info@complianceplus.hk