Newsletter – April 2018

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

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

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

For more details, please refer to:

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

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

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

For more details, please refer to:

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

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

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

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

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

For more details, please refer to:

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

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

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

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

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

For more details, please refer to:

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

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

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

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

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