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.

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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.

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Newsletter – July 2018

Content
  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

5.     SFC bans Joseph Hsu Kar Hing for three years

On 17 July 2018, the SFC has banned Mr Joseph Hsu Kar Hing, a former responsible officer of Standard Chartered Securities (Hong Kong) Limited, from re-entering the industry for three years from 6 July 2018 to 5 July 2021 for failing to discharge his duties as a sponsor principal and a Responsible Officer of Standard Chartered Securities (Hong Kong) Limited.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR85

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6.        SFC bans Poon Chun Hing for 30 months

On 18 July 2018, the SFC has banned Mr Poon Chun Hing from re-entering the industry for 30 months from 18 July 2018 to 17 January 2021 as SFC calls into question of Poon’s fitness and properness to be a licensed person.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR84

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=18PR84&appendix=0

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7.       SFC reprimands and fines HSBC Broking Securities (Asia) Limited HK$9.6 million for regulatory breaches over bond sale

On 19 July 2018, the SFC has reprimanded and fined HSBC Broking Securities (Asia) Limited HK$9.6 million for systemic deficiencies in its bond selling practices.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR86

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=18PR86&appendix=0

8.       Broker acquitted of illegal short selling

On 25 July 2018, the Eastern Magistrates’ Court found Mr Wong Hung not guilty of illegal short selling.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR88

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9.       Account executive convicted and fined for illegal short selling

On 26 July 2018, the Eastern Magistrates’ Court has convicted Mr Hui Kwok Piu and fined him HK$231,000 for illegal short selling in the shares of Coslight Technology International Group Limited when he did not have sufficient quantities of the shares to sell.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR89

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10.       SFC publicly censures Liang Guosheng and imposes a cold-shoulder order for breach of the Takeovers Code

On 30 July 2018, the SFC has publicly censured and imposed a 24-month (commencing on 30 July 2018 to 29 July 2020) cold-shoulder order against Liang Guosheng for breaching the mandatory general offer obligation of the Code on Takeovers and Mergers in respect of Silver Base Group Holdings Limited.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR91

For the Executive decisions and statements, please refer to:

https://www.sfc.hk/web/EN/files/CF/pdf/Cold-Shoulder/Public%20Statement_Order%20(ENG)%2030%20July%2018.pdf

 

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 – June 2018

Content
  1. SFC reprimands and fines Hang Seng Investment Management Limited HK$3 million for regulatory breaches over funds’ cash management
  2. SFC reprimands and fines Lau Ki Fung HK$80,000

1.        SFC reprimands and fines Hang Seng Investment Management Limited HK$3 million for regulatory breaches over funds’ cash management

On 31 May 2018, the SFC has reprimanded and fined Hang Seng Investment Management Limited HK$3 million for its failure to comply with regulatory requirements on cash management involving SFC-authorized funds.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR58

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR58&appendix=0

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2.      SFC reprimands and fines Lau Ki Fung HK$80,000

On 12 June 2018, the SFC has reprimanded Mr. Lau Ki Fung, a former account executive of KGI Asia Limited, and fined him HK$80,000 for failing to keep proper records of order instructions from clients.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR65

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR65&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 

Newsletter – May 2018

Content
  1. Licence applicant convicted of providing false information to SFC
  2. SFC commences MMT proceedings against Magic Holdings International Limited and its directors for late disclosure of inside information
  3. SFC reprimands and fines Citigroup Global Markets Asia Limited HK$57 million for sponsor failures
  4. SFC reprimands and fines Noah Holdings (Hong Kong) Limited HK$5 million for regulatory breaches

1.        Licence applicant convicted of providing false information to SFC

On 11 May 2018, the Eastern Magistrates’ Court convicted Mr Lui Ho Yeung after he pleaded guilty to two counts of making false or misleading representations in support of his licence applications to the SFC.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR48

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2.      SFC commences MMT proceedings against Magic Holdings International Limited and its directors for late disclosure of inside information

On 15 May 2018, the SFC has commenced proceedings in the Market Misconduct Tribunal against Magic Holdings International Limited and its nine directors for failing to disclose inside information as soon as reasonably practicable on the potential acquisition of its issued shares by L’Oréal S.A., a French cosmetics group in 2013.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR49

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

http://www.mmt.gov.hk/eng/rulings/Magic_Holdings_15052018_e.pdf

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3.        SFC reprimands and fines Citigroup Global Markets Asia Limited HK$57 million for sponsor failures

On 17 May 2018, the SFC has reprimanded and fined Citigroup Global Markets Asia Limited (“Citi”) HK$57 million after resolving concerns with Citi over its discharge of duties as a sponsor in relation to the listing application of Real Gold Mining Limited.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR51

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR51&appendix=0

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4.         SFC reprimands and fines Noah Holdings (Hong Kong) Limited HK$5 million for regulatory breaches

On 29 May 2018, the SFC has publicly reprimanded and fined Noah Holdings (Hong Kong) Limited (Noah HK) HK$5 million over Noah HK’s internal system and control failures in its sale and distribution of investment products.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR57

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR57&appendix=0

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 – April 2018

Content
  1. SFC seeks orders to disqualify former senior executives of Far East Holdings International Limited
  2. SFC commences MMT proceedings against Fujikon and its senior executives for late disclosure of inside information
  3. SFC reprimands and fines Instinet Pacific Limited HK$17.3 million for failures concerning its electronic and algorithmic trading systems and alternative liquidity pool
  4. SFC reprimands and fines CN Capital Management Limited and responsible officers HK$1.2 million over regulatory breaches

1.        SFC seeks orders to disqualify former senior executives of Far East Holdings International Limited

On 10 April 2018, the SFC has commenced legal proceedings in the Court of First Instance to seek disqualification orders against Mr Duncan Chiu, former managing director and chief executive officer of Far East Holdings International Limited.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR37

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2.      SFC commences MMT proceedings against Fujikon and its senior executives for late disclosure of inside information

On 10 April 2018, the SFC has commenced proceedings in the Market Misconduct Tribunal against Fujikon Industrial Holdings Limited for failing to disclose inside information as soon as reasonably practicable on the discontinuance of headphone production for one of the company’s top customers.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR38

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

http://www.mmt.gov.hk/eng/rulings/Fujikon_28032018_e.pdf

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3.        SFC reprimands and fines Instinet Pacific Limited HK$17.3 million for failures concerning its electronic and algorithmic trading systems and alternative liquidity pool

On 13 April 2018, the SFC has reprimanded and fined Instinet Pacific Limited (“IPL”) HK$17.3 million after resolving concerns over IPL’s breaches of the Code of Conduct in relation to its electronic and algorithmic trading systems and alternative liquidity pool.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR40

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR40&appendix=0

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4.         SFC reprimands and fines CN Capital Management Limited and responsible officers HK$1.2 million over regulatory breaches

On 24 April 2018, the SFC has reprimanded CN Capital Management Limited and fined it HK$1,000,000 for failing to maintain an effective compliance function and satisfactory internal controls concerning employee account dealing.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR42

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR42&appendix=0

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 – March 2018

Content
  1. Solicitor and sisters granted leave to appeal to Court of Final Appeal
  2. SFC issues restriction notice to broker to freeze client account linked to suspected insider dealing
  3. SFC reprimands and fines CLSA Limited HK$9 million over internal control failures
  4. SFC reprimands and fines Deutsche Bank AKTIENGESELLSCHAFT and Deutsche Securities Asia Limited HK$8.3 million for regulatory breaches
  5. SFC’s regulatory action halts ICO to Hong Kong public
  6. SFC reprimands and fines UBS Securities Asia Limited HK$4.5 million in relation to facilitation trading activities
  7. Court convicts Chan Chi Kit of unlicensed dealing

1.         Solicitor and sisters granted leave to appeal to Court of Final Appeal

On 6 March 2018, the Court of Appeal granted leave for Mr Lee Kwok Wa, a solicitor, and his two sisters to take their case to the Court of Final Appeal in relation to the interpretation of section 300 of the Securities and Futures Ordinance arising from a case on fraudulent or deceptive transactions involving securities, subject to a final approval by the Court of Final Appeal.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR22

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2.         SFC issues restriction notice to broker to freeze client account linked to suspected insider dealing

On 9 March 2018, the SFC has issued a restriction notice to Interactive Brokers Hong Kong Limited, prohibiting it from dealing with or processing certain assets held in a client account which is related to suspected insider dealing in the shares of Bloomage BioTechnology Corporation Limited between 22 May and 15 June 2017.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR23

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3.    SFC reprimands and fines CLSA Limited HK$9 million over internal control failures

On 13 March 2018, the SFC has reprimanded and fined CLSA Limited (“CLSA”) HK$9 million after resolving concerns over CLSA’s internal control failures in relation to its client facilitation services and reporting obligation under the Code of Conduct.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR25

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR25&appendix=0

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4.         SFC reprimands and fines Deutsche Bank AKTIENGESELLSCHAFT and Deutsche Securities Asia Limited HK$8.3 million for regulatory breaches

On 13 March 2018, the SFC has resolved its concerns with Deutsche Bank AKTIENGESELLSCHAFT and its wholly-owned subsidiary Deutsche Securities Asia Limited over regulatory breaches related to short position reporting, unlicensed regulated activities and segregation of client monies.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR26

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR26&appendix=0

5.         SFC’s regulatory action halts ICO to Hong Kong public

On 19 March 2018, an initial coin offering (“ICO”) issuer Black Cell Technology Limited has halted its ICO to the Hong Kong public and agreed to unwind ICO transactions for Hong Kong investors by returning them the relevant tokens following regulatory action by the SFC over concerns that Black Cell had engaged in potential unauthorized promotional activities and unlicensed regulated activities.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR29

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6.        SFC reprimands and fines UBS Securities Asia Limited HK$4.5 million in relation to facilitation trading activities

On 21 March 2018, SFC has reprimanded and fined UBS Securities Asia Limited HK$4.5 million for failing to put in place effective controls to record transactions and client consents in relation to its facilitation trading activities.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR30

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR30&appendix=0

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7.        Court convicts Chan Chi Kit of unlicensed dealing

On 22 March 2018, the Eastern Magistrates’ Court today convicted Mr Chan Chi Kit of unlicensed dealing in securities in a prosecution brought by the SFC.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR31

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 – February 2018

Content
  1. Court of Final Appeal to hear Moody’s case
  2. Court orders Qunxing and former directors to compensate investors over disclosure of false or misleading information
  3. SFC reprimands and fines Credit Suisse (Hong Kong) Limited, Credit Suisse Securities (Hong Kong) Limited and Credit Suisse AG HK$39.3 million for regulatory breaches
  4. SFC reprimands and fines Interactive Brokers Hong Kong Limited HK$4.5 million for failures concerning its electronic and algorithmic trading systems
  5. Court orders Titan’s former senior executive and his mother to make payments to investors over insider dealing in Titan shares
  6. SFC obtains disqualification and compensation orders against former chairman and directors of Starlight

1.         Court of Final Appeal to hear Moody’s case

On 7 February 2018, the Court of Final Appeal granted leave to Moody’s Investors Service Hong Kong Limited’s to take the case to the Court of Final Appeal in the matter of the SFC disciplinary action in relation to a special comment report it published in 2011.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR11

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2.         Court orders Qunxing and former directors to compensate investors over disclosure of false or misleading information

On 7 February 2018, the Court of First Instance has granted orders sought by the SFC in its proceedings against Qunxing Paper Holdings Company Limited (“Qunxing”), its former chairman and vice-chairman – Mr Zhu Yu Guo and his son, Mr Zhu Mo Qun – as well as its subsidiary Best Known Group Limited to compensate investors who subscribed for Qunxing shares in its initial public offering or purchased them in the secondary market between 2007 and 2011.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR10

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3.    SFC reprimands and fines Credit Suisse (Hong Kong) Limited, Credit Suisse Securities (Hong Kong) Limited and Credit Suisse AG HK$39.3 million for regulatory breaches

On 8 February 2018, the SFC has resolved its concerns with Credit Suisse (Hong Kong) Limited, Credit Suisse Securities (Hong Kong) Limited and Credit Suisse AG over internal control failures.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR12

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR12&appendix=0

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4.         SFC reprimands and fines Interactive Brokers Hong Kong Limited HK$4.5 million for failures concerning its electronic and algorithmic trading systems

On 14 February 2018, the has reprimanded and fined Interactive Brokers Hong Kong Limited (“IBHK”) HK$4.5 million after resolving concerns over IBHK’s breaches of the Code of Conduct in its execution of market orders using electronic and algorithmic trading systems.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR14

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR14&appendix=0

5.         Court orders Titan’s former senior executive and his mother to make payments to investors over insider dealing in Titan shares

On 23 February 2018, the Court of First Instance has ordered a former senior executive of an affiliate of Titan Petrochemical Group Limited (“Titan”), Mr Augustine Cheong Kai Tjieh and his mother, Ms Gan Ser Soon to pay investors after the Market Misconduct Tribunal (“MMT”) earlier found the pair engaged in insider dealing in the shares of Titan in 2012

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR16

For the MMT report, please refer to:

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

6.         SFC obtains disqualification and compensation orders against former chairman and directors of Starlight

On 27 February 2018, the Court of First Instance has ordered Starlight Culture Entertainment Group Limited’s (“Starlight”) former chairman Mr Tong Shek Lun and two former executive directors, Ms Kinny Ko Lai King and Ms Regina Chung Wai Yu, to pay a sum of US$890,241.37 as compensation to Starlight following findings of misconduct in connection with their handling of the company’s disposal of subsidiaries in September 2008.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR19

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 – January 2018

Content

  1. SFC publicly censures Zhang Qiang for breach of the Takeovers Code
  2. Court orders re-trial after allowing SFC’s appeal in illegal short selling case
  3. SFC bans Ng Chau for six months
  4. SFC reprimands and fines Wu Hon Cheung HK$50,000
  5. SFC reprimands and fines EFG Bank AG HK$2 million
  6. Court finds no insider dealing in Integrated Distribution Services Group shares
  7. SFC bans Chan Wai Nun for six months
  8. SFC obtains court order to disqualify former chairman of Pearl Oriental Oil Limited for six years

 

1. SFC publicly censures Zhang Qiang for breach of the Takeovers Code

On 20 December 2017, the SFC has publicly censured Zhang Qiang for acquiring shares within six months after the close of an offer at above the offer price in breach of Rule 31.3 of the Takeovers Code.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=17PR156

For a copy of the Executive Statement, please refer to:

http://www.sfc.hk/web/EN/files/CF/pdf/Public_censure/Public%20censure%20Zhang%20Qiang%20Executive%20statement%20(Eng).pdf

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2. Court orders re-trial after allowing SFC’s appeal in illegal short selling case

On 27 December 2017, the Court of First Instance has allowed the SFC appeal against the acquittal of Mr Wong Hung of illegal short selling and ordered that the case be remitted back to the Magistrates’ Court for a re-trial.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR157

For a copy of the Court of First Instance’s judgment (Only available in Chinese), please refer to:

http://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=112992&QS=%2B&TP=JU

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3. SFC bans Ng Chau for six months

On 27 December 2017, the SFC has banned Mr Ng Chau, a former account executive of Get Nice Securities Limited, from re-entering the industry for six months from 15 December 2017 to 14 June 2018 for breach of the SFC’s Code of Conduct.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR158

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=17PR158&appendix=0

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4. SFC reprimands and fines Wu Hon Cheung HK$50,000

On 9 January 2018, the SFC has reprimanded Mr Wu Hon Cheung, a former account executive of Sun Hung Kai Investment Services Limited, and fined him HK$50,000 for failing to keep proper records of a client’s order instructions, in breach of the Code of Conduct.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR1

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR1&appendix=0

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5. SFC reprimands and fines EFG Bank AG HK$2 million

On 11 January 2018, the SFC has reprimanded and fined EFG Bank AG HK$2 million for dealing in futures contracts without the required registration.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR2

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR2&appendix=0

6. Court finds no insider dealing in Integrated Distribution Services Group shares

On 18 January 2018, the Eastern Magistrates’ Court today found that Mr Lam Yik Tung, a former employee of BNP Paribas Capital (Asia Pacific) Limited, and his friends – Mr Chan Lit Chun and Mr Anson Mui Ka Leung – were not guilty of insider dealing in the shares of Integrated Distribution Services Group Limited in 2010.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR4

7.  SFC bans Chan Wai Nun for six months

On 22 January 2018, the SFC has banned Mr. Chan Wai Nun, a former investment counsellor of DBS Bank (Hong Kong) Limited (“DBSHK”), from re-entering the industry for six months from 19 January 2018 to 18 July 2018 for transferring client data out of DBSHK prior to his departure from DBSHK to join another bank.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR6

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR6&appendix=0

8. SFC obtains court order to disqualify former chairman of Pearl Oriental Oil Limited for six years

On 25 January 2018, the SFC has obtained an order in the High Court to disqualify Mr Fan Di, former chairman, president and executive director of Pearl Oriental Oil Ltd for defalcation, misfeasance and other misconduct towards the company.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR8

For a summary of the material events and the allegation, please refer to:

http://www.sfc.hk/web/doc/EN/general/general/press_release/11/11PR58_Extract.pdf

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 – December 2017

Content

  1. Court sets pre-trial date for insider dealing case
  2. Court dismisses challenge to SFC’s search warrant and provision of information to Mainland regulator
  3. SFC bans Abbie Yip Ka Ying for 18 months
  4. SFC reprimands and fines FXCM Asia Limited HK$2 million
  5. SFC reprimands and fines Standard Chartered Securities (Hong Kong) Limited HK$2.6 million

 

1. Court sets pre-trial date for insider dealing case

On 8 December 2017, the Eastern Magistrates’ Court adjourned the criminal proceedings brought by the SFC against Mr Au-Yeung Siu Pang to 26 January 2018 for a pre-trial review after he pleaded not guilty to charges of insider dealing in the shares of China CBM Group Company Limited.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR145; and

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR120

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2. Court dismisses challenge to SFC’s search warrant and provision of information to Mainland regulator

On 8 December 2017, the Court of First Instance has made a decision dismissing a challenge lodged by Mr Tang Hanbo against the search warrant obtained by the SFC for an ongoing investigation into suspected breaches of the Takeovers Code and suspected offences under the Securities and Futures Ordinance.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR146

For a copy of the Court of Appeal’s judgment, please refer to:

http://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=112254&QS=%2B&TP=JU

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3. SFC bans Abbie Yip Ka Ying for 18 months

On 13 December 2017, the SFC has banned Ms Abbie Yip Ka Ying, a former trader of BNP Paribas, Hong Kong Branch, from re-entering the industry for 18 months for breach of the Code of Conduct over her attempts to conceal a trade execution error.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR149

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=17PR149&appendix=0

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4. SFC reprimands and fines FXCM Asia Limited HK$2 million

On 13 December 2017, the SFC has reprimanded and fined FXCM Asia Limited (now known as Rakuten Securities Hong Kong Limited) HK$2 million for regulatory breaches and internal control failings relating to under-segregation of client money.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR150

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=17PR150&appendix=0

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5. SFC reprimands and fines Standard Chartered Securities (Hong Kong) Limited HK$2.6 million

On 18 December 2017, the SFC has reprimanded and fined Standard Chartered Securities (Hong Kong) Limited HK$2.6 million for internal control failures relating to short selling orders and breach of the Securities and Futures (Financial Resources) Rules.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR152

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=17PR152&appendix=0

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