Regulatory News (May 2020)

Newsletter – April 2020

Content
  1. SFC sanctions China Rise Securities Asset Management Company Limited’s former responsible officers
  2. SFC issues restriction notice to Agg. Asset Management Limited
  3. SFC reprimands and fines HSBC Investment Funds (Hong Kong) Limited and HSBC Global Asset Management (Hong Kong) Limited HK$3.5 million for regulatory breaches over funds’ cash management
  4. SFC reprimands and fines BOCOM International Securities HK$19.6 million for internal control failures
1.     SFC sanctions China Rise Securities Asset Management Company Limited’s former responsible officers

On 31 March 2020, SFC has banned Mr. Sammy Shiu Kin Keung, former chief executive officer and responsible officer of China Rise Securities Asset Management Company Limited, from re-entering the industry for 28 months from 30 March 2020 to 29 July 2022.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR27

For the SFC press release dated 9 June 2017, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=17PR79

For the SFC press release dated 31 October 2019, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR101

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR27&appendix=0

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2.     SFC issues restriction notice to Agg. Asset Management Limited

On 3 April 2020, SFC has issued a restriction notice to Agg. Asset Management Limited because of doubts over company’s reliability, integrity, and ability to carry on regulated activities competently, honestly and fairly, and hence, its fitness and properness to remain licensed.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR31

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3.     SFC reprimands and fines HSBC Investment Funds (Hong Kong) Limited and HSBC Global Asset Management (Hong Kong) Limited HK$3.5 million for regulatory breaches over funds’ cash management

On 7 April 2020, SFC has reprimanded and fined HSBC Investment Funds (Hong Kong) Limited and HSBC Global Asset Management (Hong Kong) Limited HK$3.5 million for breaches of regulatory requirements in relation to cash management for SFC-authorized funds.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR32

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR32&appendix=0

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4.     SFC reprimands and fines BOCOM International Securities HK$19.6 million for internal control failures

On 20 April 2020, SFC has reprimanded and fined BOCOM International Securities Limited a total of HK$19.6 million for a range of regulatory breaches, including failures concerning the handling of third party fund deposits and the maintenance and implementation of a margin lending and margin call policy.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR36

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR36&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.

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Newsletter – March 2020

Content
  1. SFC bans Chan Tan Lo for 14 months
  2. SFC bans Mo Shau Wah for life
  3. Market Misconduct Tribunal finds Magic Holdings International Limited and its directors culpable of late disclosure of inside information
1.     SFC bans Chan Tan Lo for 14 months

On 19 March 2020, SFC has banned Ms. Chan Tan Lo, a former relationship manager of BOCI Securities Limited for 14 months from 19 March 2020 to 18 May 2021.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR22

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR22&appendix=0

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2.     SFC bans Mo Shau Wah for life

On 23 March 2020, SFC has banned Ms. Mo Shau Wah, a former account executive of China Pacific Securities Limited, from re-entering the industry for life following her criminal conviction.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR23

For the reason for sentence, please refer to:
https://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=121814&QS=%24%28HCCC%2C12%5C%7C%5C13%2F2017%29&TP=RS

For the SFC press release dated 1 March 2013, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=13PR14

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3.     Market Misconduct Tribunal finds Magic Holdings International Limited and its directors culpable of late disclosure of inside information

On 25 March 2020, The Market Misconduct Tribunal found that Magic Holdings International Limited and five of its’ directors culpable of the company’s failure to disclose in a timely manner inside information on L’Oréal S.A.’s proposed acquisition of Magic Holdings International Limited in 2013, as required under the corporate disclosure requirements of the SFO.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR24

For the SFC circular dated 15 May 2018, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR49

For the Report of the Market Misconduct Tribunal of Hong Kong, please refer to:
https://www.mmt.gov.hk/eng/reports/Magic_Report%20_18.3.2020.pdf

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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