Newsletter – January 2019
- SFC issues restriction notices to three brokers to prohibit order placing in listed derivative warrants in client accounts linked to suspected market misconduct
- SFC reprimands and fines FWD Life Insurance Company (Bermuda) Limited HK$2.4 million for regulatory breaches
- Market Misconduct Tribunal sanctions China AU’s former CEO and related persons for false trading
- Circular to licensed corporations – Revised financial return
For more details, please refer to:
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:
For the Statement of Disciplinary Action, please refer to:
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:
For the SFC’s press release dated 7 August 2018, please refer to:
For the MMT report, please refer to:
https://www.mmt.gov.hk/eng/reports/Report_of_SkyNet_(China_AU)_PartI_e.pdf
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.
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