Newsletter – December 2018

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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.

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Newsletter – November 2018

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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: [email protected] or call at +852-3487 6903.

To subscribe, update your email address or unsubscribe, please email [email protected] 

Newsletter – October 2018

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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: [email protected] or call at +852-3487 6903.

To subscribe, update your email address or unsubscribe, please email [email protected] 

Newsletter – September 2018

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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: [email protected] or call at +852-3487 6903.

To subscribe, update your email address or unsubscribe, please email [email protected] 

Newsletter – August 2018

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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: [email protected] or call at +852-3487 6903.

To subscribe, update your email address or unsubscribe, please email [email protected] 

Newsletter – July 2018

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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: [email protected] or call at +852-3487 6903.

To subscribe, update your email address or unsubscribe, please email [email protected] 

Newsletter – June 2018

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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: [email protected] or call at +852-3487 6903.

To subscribe, update your email address or unsubscribe, please email [email protected] 

Newsletter – May 2018

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  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: [email protected] or call at +852-3487 6903.

To subscribe, update your email address or unsubscribe, please email [email protected] 

Newsletter – April 2018

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  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: [email protected] or call at +852-3487 6903.

To subscribe, update your email address or unsubscribe, please email [email protected] 

Newsletter – March 2018

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  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: [email protected] or call at +852-3487 6903.

To subscribe, update your email address or unsubscribe, please email [email protected]