Newsletter – May 2019

Content
  1. SFC-ICAC operation leads to charging of ex-Convoy director Cho Kwai Chee
  2. SFC suspends Gransing Securities’s chairperson Oei Hong Eng for eight months
  3. SFC bans Wang Can for 30 months
  4. Futures trader Tsoi Wan convicted of market manipulation
  5. Court of Appeal dismisses leave application of Andrew Left
  6. SFC reprimands and fines China Merchants Securities (HK) Co., Limited HK$27 million for sponsor failures
1.     SFC-ICAC operation leads to charging of ex-Convoy director Cho Kwai Chee

On 16 May 2019, following the joint operation of the SFC and the ICAC in December 2017, the ICAC charged Mr Cho Kwai Chee, a former Executive Director of Convoy Global Holdings Limited, with conspiracy to defraud.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR39

For the ICAC’s press release, please refer to:

https://www.icac.org.hk/en/press/index_id_730.html

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2.      SFC suspends Gransing Securities’s chairperson Oei Hong Eng for eight months

On 16 May 2019, the SFC suspended the licence of Ms Oei Hong Eng, the chairperson and a responsible officer of Gransing Securities Co., Limited, for eight months from 16 May 2019 to 15 January 2020 for attempting to create a false or misleading appearance of active trading in securities.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR40

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR40&appendix=0

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3.     SFC bans Wang Can for 30 months

On 16 May 2019, the SFC banned Mr Wang Can, a former licensed representative of China Galaxy International Securities (Hong Kong) Co., Limited, for 30 months for misconduct.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR41

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR41&appendix=0

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4.      Futures trader Tsoi Wan convicted of market manipulation

On 23 May 2019, the the Eastern Magistrates’ Court convicted Mr Tsoi Wan of three charges of manipulating the calculated opening price of the Hang Seng Index futures contracts in the futures market following a prosecution by the SFC.

Tsoi, who pleaded guilty to three charges of market manipulation, was fined HK$60,000.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR42

5.      Court of Appeal dismisses leave application of Andrew Left

On 24 May 2019, the Court of Appeal dismissed the application by Mr Andrew Left of Citron Research for leave to appeal to the Court of Final Appeal against the determinations of the Market Misconduct Tribunal.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR43

For the SFC’s press release dated 22 December 2014, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=14PR147

For the SFC’s press release dated 19 March 2015, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=15PR24

For the SFC’s press release dated 2 November 2015, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=15PR106

For the SFC’s press release dated 26 August 2016, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=16PR84

For the SFC’s press release dated 20 October 2016, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=16PR107

For the SFC’s press release dated 26 February 2019, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR14

6.      SFC reprimands and fines China Merchants Securities (HK) Co., Limited HK$27 million for sponsor failures

On 27 May 2019, the SFC reprimanded and fined China Merchants Securities (HK) Co., Limited HK$27 million for failing to discharge its obligations as a joint sponsor in relation to the listing application of China Metal Recycling (Holdings) Limited.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR44

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=19PR44&appendix=0

For the SFC’s press release dated 27 February 2019, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR15

For the SFC’s press release dated 26 February 2015, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=15PR18

For the SFC’s press release dated 14 March 2019, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR19

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 – April 2019

Content
  1. SFC commences insider dealing prosecution against legal adviser
  2. Former director of DBA Telecommunication (Asia) Holdings Limited convicted of issuing false or misleading announcement
  3. Market Misconduct Tribunal fines Fujikon, its CEO and CFO HK$1.5 million in total for late disclosure of inside information
  4. SFC reprimands and fines Nine Masts Capital Limited HK$1.2 million over naked short selling
  5. SFC bans former responsible officer of Guosen Securities (HK) Brokerage Company, Limited for 10 months
  6. Retrial of insider dealing case after Court of Final Appeal dismisses leave application to appeal
1.     SFC commences insider dealing prosecution against legal adviser

On 11 April 2019, the SFC commenced criminal proceedings in the Eastern Magistrates’ Court against Mr. Leung Pak Keung, a practising solicitor, over alleged insider dealing in the shares of CASH Financial Services Group Limited.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR30

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2.      Former director of DBA Telecommunication (Asia) Holdings Limited convicted of issuing false or misleading announcement

On 11 April 2019, the Eastern Magistrates’ Court convicted Mr Chan Wai Chuen, former chief financial officer, company secretary and an executive director of DBA Telecommunication (Asia) Holdings Limited for his role in a false or misleading statement in DBA’s announcement in a prosecution 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=19PR31

For the SFC’s press release dated 28 June 2018, please refer to:

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

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3.     Market Misconduct Tribunal fines Fujikon, its CEO and CFO HK$1.5 million in total for late disclosure of inside information

On 12 April 2019, the Market Misconduct Tribunal (“MMT”) found that Fujikon Industrial Holdings Limited, the company’s chairman and chief executive officer, Mr Yeung Chi Hung, and its chief financial officer and company secretary, Ms Chow Lai Fung, had failed to make timely disclosure of inside information 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=19PR27

For the SFC’s press release dated 10 April 2018, please refer to:

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

For the MMT Report, please refer to:

https://www.mmt.gov.hk/eng/reports/reports.htm

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4.      SFC reprimands and fines Nine Masts Capital Limited HK$1.2 million over naked short selling

On 18 April 2019, the SFC reprimanded and fined Nine Masts Capital Limited HK$1.2 million for failures relating to the short selling of Yuzhou Properties Company Limited shares in May 2015.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR32

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR32&appendix=0

5.      SFC bans former responsible officer of Guosen Securities (HK) Brokerage Company, Limited for 10 months

On 23 April 2019, the SFC prohibited Mr Su Xiqiang, former head of retail brokerage and responsible officer of Guosen Securities (HK) Brokerage Company, Limited, from re-entering the industry for 10 months from 17 April 2019 to 16 February 2020.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR33

For the SFC’s press release dated 18 February 2019, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR10

For the SFC’s circular on Compliance with Anti-Money Laundering / Counter Financing of Terrorism requirements dated 26 January 2017, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/circular/aml/doc?refNo=17EC9

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR33&appendix=0

6.      Retrial of insider dealing case after Court of Final Appeal dismisses leave application to appeal

On 26 April 2019, the Court of Final Appeal dismissed the application of Mr Cheng Chak Ngok, former executive director, chief financial officer and company secretary of ENN Energy Holdings Limited, for leave to appeal against the judgment of the Court of Appeal on the retrial of alleged insider dealing in the shares of China Gas Holdings Limited by Cheng.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR36

For the SFC’s press release dated 25 July 2016, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=16PR72

For the SFC’s press release dated 27 March 2017, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR41

For the SFC’s press release dated 11 September 2018, please refer to:

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

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 2019

Content
  1. SFC seeks disqualification orders against former directors of Luxey International (Holdings) Limited
  2. SFC fines UBS HK$375 million and suspends its licence for one year for sponsor failures
  3. SFC reprimands and fines Standard Chartered Securities HK$59.7 million for sponsor failures
  4. SFC reprimands and fines Morgan Stanley Asia Limited HK$224 million for sponsor failures
  5. SFC reprimands and fines Merrill Lynch Far East Limited HK$128 million for sponsor failures
  6. SFC reprimands and fines BOCI Securities Limited HK$10 million for regulatory breaches in selling investment products
  7. SFC issues restriction notices to nine brokers to freeze client accounts linked to suspected market manipulation of China Ding Yi Feng shares
1.     SFC seeks disqualification orders against former directors of Luxey International (Holdings) Limited

On 7 March 2019, the SFC commenced legal proceedings in the Court of First Instance to seek court orders to disqualify the former chairman and executive director of Luxey International (Holdings) Limited, Mr Joseph Lau Chi Yuen, and the company’s former chief executive officer and executive director, Mr Chung Man Wai.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR18

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2.      SFC fines UBS HK$375 million and suspends its licence for one year for sponsor failures

On 14 March 2019, the SFC reprimanded and fined UBS AG and UBS Securities Hong Kong Limited a sum of HK$375 million for failing to discharge their obligations as one of the joint sponsors of three listing applications, namely, China Forestry Holdings Company Limited, Tianhe Chemicals Group Limited, and another listing application.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR19

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR19&appendix=0

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3.     SFC reprimands and fines Standard Chartered Securities HK$59.7 million for sponsor failures

On 14 March 2019, the SFC reprimanded and fined Standard Chartered Securities (Hong Kong) Limited HK$59.7 million for failing to discharge its obligations as one of the joint sponsors in relation to the listing application of China Forestry Holdings Company Limited in 2009.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR20

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR20&appendix=0

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4.      SFC reprimands and fines Morgan Stanley Asia Limited HK$224 million for sponsor failures

On 14 March 2019, the SFC reprimanded and fined Morgan Stanley Asia Limited HK$224 million for failing to discharge its obligations as one of the joint sponsors in relation to the listing application of Tianhe Chemicals Group Limited in 2014.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR21

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR21&appendix=0

5.      SFC reprimands and fines Merrill Lynch Far East Limited HK$128 million for sponsor failures

On 14 March 2019, the SFC reprimanded and fined Merrill Lynch Far East Limited HK$128 million for failing to discharge its obligations as one of the joint sponsors in relation to the listing application of Tianhe Chemicals Group Limited in 2014.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR22

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR22&appendix=0

6.      SFC reprimands and fines BOCI Securities Limited HK$10 million for regulatory breaches in selling investment products

On 18 March 2019, the SFC reprimanded and fined BOCI Securities Limited HK$10 million over BSL’s internal system and control failures in its investment product selling practices.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR17

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=19PR17&appendix=0

7.      SFC issues restriction notices to nine brokers to freeze client accounts linked to suspected market manipulation of China Ding Yi Feng shares

On 20 March 2019, the SFC issued restriction notices to nine brokers, prohibiting them from dealing with or processing certain assets held in their clients’ accounts which are related to suspected market manipulation in the shares of China Ding Yi Feng Holdings Limited between 2018 and early 2019.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR23

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 2019

Content
  1. SFC revokes W. Falcon Asset Management (Asia) Limited’s licence
  2. Court dismisses judicial review application against SFC
  3. SFC issues restriction notices to three brokers to freeze client accounts related to suspected market misconduct
  4. SFC reprimands and fines Guosen Securities (HK) Brokerage Company, Limited HK$15.2 million for breaches of anti-money laundering regulatory requirements
  5. Former GEM-listed group finance manager jailed for four months for insider dealing
1.     SFC revokes W. Falcon Asset Management (Asia) Limited’s licence

On 4 February 2019, the SFC revoked the licence of W. Falcon Asset Management (Asia) Limited for window-dressing its liquid capital, breaching the terms of a restriction notice and failing to provide timely notification of the resignation of its director who engineered the window-dressing scheme

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR7

For the SFC’s press release dated 7 July 2017, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=17PR94

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR7&appendix=0

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2.      Court dismisses judicial review application against SFC

On 14 February 2019, the Court of First Instance dismissed a judicial review application brought by a SFC-licensed corporation and its responsible officer against the SFC in connection with an investigation of a suspected market manipulation in the shares of a Japan-listed company.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR8

For the Court’s judgment, please refer to:

https://legalref.judiciary.hk/lrs/common/ju/ju_frame.jsp?DIS=120120&currpage=T

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3.     SFC issues restriction notices to three brokers to freeze client accounts related to suspected market misconduct

On 15 February 2019, the SFC issued restriction notices to Changjiang Securities Brokerage (HK) Limited, Haitong International Securities Company Limited and Kingston Securities Limited, prohibiting them from dealing with or processing certain assets held in various client accounts which are related to the suspected disclosure of false or misleading financial information in various announcements, annual results and annual reports of a listed company, which was likely to induce transactions.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR9

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4.      SFC reprimands and fines Guosen Securities (HK) Brokerage Company, Limited HK$15.2 million for breaches of anti-money laundering regulatory requirements

On 18 February 2019, the SFC reprimanded Guosen Securities (HK) Brokerage Company, Limited and fined it HK$15.2 million for failures in complying with anti-money laundering and counter-terrorist financing regulatory requirements when handling third party fund deposits.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR10

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=19PR10&appendix=0

5.      Former GEM-listed group finance manager jailed for four months for insider dealing

On 19 February 2019, the Eastern Magistrates’ Court sentenced Mr Au-Yeung Siu Pang, a former group finance manager of China CBM Group Company Limited, to four months of imprisonment and fined him HK$120,000 after he was convicted of insider dealing in China CBM shares in a prosecution brought by the SFC.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR11

For the SFC’s press release dated 7 September 2017, please refer to:

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

For the SFC’s press release dated 8 December 2017, please refer to:

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

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 2019

Content
  1. SFC issues restriction notices to three brokers to prohibit order placing in listed derivative warrants in client accounts linked to suspected market misconduct
  2. SFC reprimands and fines FWD Life Insurance Company (Bermuda) Limited HK$2.4 million for regulatory breaches
  3. Market Misconduct Tribunal sanctions China AU’s former CEO and related persons for false trading
  4. Circular to licensed corporations – Revised financial return
1.     SFC issues restriction notices to three brokers to prohibit order placing in listed derivative warrants in client accounts linked to suspected market misconduct
On 4 January 2019, the SFC issued restriction notices to Fulbright Securities Limited, Futu Securities International (Hong Kong) Limited and Gong Ping Securities Limited, prohibiting them from accepting or placing orders on listed derivative warrants in client accounts linked to suspected market misconduct.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR1

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2.      SFC reprimands and fines FWD Life Insurance Company (Bermuda) Limited HK$2.4 million for regulatory breaches

On 8 January 2019, the SFC reprimanded and fined FWD Life Insurance Company (Bermuda) Limited HK$2.4 million for failures in complying with the key personnel requirements under the SFC Code on MPF Products and the Fund Manager Code of Conduct.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR2

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR2&appendix=0

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3.     Market Misconduct Tribunal sanctions China AU’s former CEO and related persons for false trading

On 21 January 2019, the Market Misconduct Tribunal (“MMT”) has imposed a disqualification order, a cold shoulder order, and a cease and desist order against Ms Samantha Keung Wai Fun, the former CEO of China AU Group Holdings Limited after finding her culpable of false trading 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=19PR4

For the SFC’s press release dated 7 August 2018, please refer to:

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

For the MMT report, please refer to:

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

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4.      Circular to licensed corporations – Revised financial return

On 25 January 2019, SFC issued a Circular to licensed corporations regarding the revised financial return. The Securities and Futures (Financial Resources) (Amendment) Rules 2018 were enacted on 12 December 2018 and some amendments which relate to the exclusion of certain lease liabilities from licensed corporations’ (LCs) liquid capital calculations came into operation on 1 January 2019. The first return for which LCs will be required to report their liquid capital calculations in accordance with these amendments is for the position ended 31 January 2019.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/circular/doc?refNo=19EC3

For the revised Form 2 of the Financial Return, please refer to:

https://www.sfc.hk/web/EN/forms/intermediaries/financial-returns.html

For the SFC’s Circular dated on 12 December 2018, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/circular/doc?refNo=18EC90

For the Gazette notice, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/circular/openAppendix?refNo=19EC3&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 – December 2018

Content
  1. SFC reprimands and fines SFM HK Management Limited HK$1.5 million over naked short selling
  2. SFC suspends Chan Ho Wai and Lam Wai Kit for nine months
  3. SFC bans Kong Kar Bong for 10 years
  4. SFC commences proceedings in Market Misconduct Tribunal against CMBC Capital Holdings Limited and its former directors for late disclosure of inside information

1.     SFC reprimands and fines SFM HK Management Limited HK$1.5 million over naked short selling

On 6 December 2018, the SFC reprimanded and fined SFM HK Management Limited HK$1.5 million for failures relating to the short selling of Great Wall Motor Company Limited shares in 2015 on behalf of a fund it managed.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR134

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR134&appendix=0

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2.      SFC suspends Chan Ho Wai and Lam Wai Kit for nine months

On 10 December 2018, the SFC suspended the licenses of Ms Chan Ho Wai and Mr Lam Wai Kit, responsible officers of FT Securities Limited, for nine months from 8 December 2018 to 7 September 2019.

For more details, please refer to: 

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR139

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3.     SFC bans Kong Kar Bong for 10 years

On 11 December 2018, the SFC banned Mr Kong Kar Bong, a former account executive of Sanfull Securities Limited, from re-entering the industry for 10 years from 11 December 2018 to 10 December 2028.

For more details, please refer to: 

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR140

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR140&appendix=0

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4.      SFC commences proceedings in Market Misconduct Tribunal against CMBC Capital Holdings Limited and its former directors for late disclosure of inside information

On 18 December 2018, the SFC commenced proceedings in the Market Misconduct Tribunal (“MMT”) against CMBC Capital Holdings Limited for failing to disclose inside information as soon as reasonably practicable.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR143

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

http://www.mmt.gov.hk/eng/rulings/CMBC_26112018_e.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.

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Newsletter – November 2018

Content
  1. SFC issues restriction notices to three brokers to prohibit order placing in listed derivative warrants in client accounts linked to suspected market misconduct
  2. Revised Guideline on Anti-Money Laundering and Counter-Terrorist Financing has come into effect
  3. Revised Fund Manager Code of Conduct has come into effect
  4. Revised Code of Conduct on Disclosure of Benefits has come into effect
  5. SFC commences MMT proceedings against Health and Happiness (H&H) International Holdings Ltd and its Chairman for late disclosure of inside information

1.     SFC sets out new regulatory approach for virtual assets

On 1 November 2018, the SFC issued a statement setting out a new approach which aims to bring virtual asset portfolio managers and distributors of virtual asset funds under its regulatory net. It also sets out a conceptual framework for the potential regulation of virtual asset trading platforms.

In light of the significant risks virtual assets pose to investors, the SFC will adopt new measures within its regulatory remit to protect those who invest in virtual asset portfolios or funds. The SFC will impose licensing conditions on firms which manage or intend to manage portfolios investing in virtual assets, irrespective of whether the virtual assets meet the definition of “securities” or “futures contracts”.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR126

For a copy of the Statement on regulatory framework for virtual asset portfolios managers, fund distributors and trading platform operators, please refer to:

https://www.sfc.hk/web/EN/news-and-announcements/policy-statements-and-announcements/reg-framework-virtual-asset-portfolios-managers-fund-distributors-trading-platform-operators.html

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2.      Revised Guideline on Anti-Money Laundering and Counter-Terrorist Financing has come into effect

On 1 November 2018, the revised Guideline on Anti-Money Laundering and Counter-Terrorist Financing (“AML/CFT Guideline”) has come into effect.

For the revised AML/CFT Guideline, please refer to: 

https://www.sfc.hk/web/EN/assets/components/codes/files-current/web/guidelines/guideline-on-anti-money-laundering-and-counter-financing-of-terrorism-(for-licensed-corporations)/guideline-on-anti-money-laundering-and-counter-financing-of-terrorism-(for-licensed-corporations).pdf

For the relevant Gazette Notice, please refer to:

https://www.sfc.hk/web/EN/pdf/Gazette/G.N.%207784%20of%202018.pdf

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3.      Revised Fund Manager Code of Conduct has come into effect

On 17 November 2018, the revised Fund Manager Code of Conduct has come into effect.

For the Revised Fund Manager Code of Conduct, please refer to: 

https://www.sfc.hk/web/EN/assets/components/codes/files-current/web/codes/fund-manager-code-of-conduct/fund-manager-code-of-conduct.pdf

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4.      Revised Code of Conduct on Disclosure of Benefits has come into effect

On 25 November 2018, the revised Code of Conduct with disclosure requirements for discretionary accounts has come into effect.

For Revised Code of Conduct, please refer to: 

https://www.sfc.hk/web/EN/assets/components/codes/files-current/web/codes/code-of-conduct-for-persons-licensed-by-or-registered-with-the-securities-and-futures-commission/code-of-conduct-for-persons-licensed-by-or-registered-with-the-securities-and-futures-commission.pdf

For the relevant Gazette Notice, please refer to:

https://www.sfc.hk/web/EN/pdf/Gazette/G.N.%203771%20of%202018.pdf

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5.    SFC commences MMT proceedings against Health and Happiness (H&H) International Holdings Ltd and its Chairman for late disclosure of inside information

On 29 Nov 2018, SFC commenced proceedings in the Market Misconduct Tribunal (“MMT”) against Health and Happiness (“H&H”) International Holdings Ltd (“Health and Happiness”) for failing to disclose price sensitive information as soon as reasonably practicable.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR131

 

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 – October 2018

Content
  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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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 – 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