Newsletter – January 2020

Content
  1. SFC reprimands and fines FIL Investment Management (Hong Kong) Limited HK $3.5 million for regulatory breaches
  2. SFC publicly censures CLSA Limited, CITIC Securities Brokerage (HK) Limited, Beijing Enterprises Holdings Limited and their representatives for breaching the Code on Share Buy-backs
  3. SFC reprimands and fines RHB Securities Hong Kong Limited HK $6.4 million
  4. Court convicts unlicensed fund manager
  5. SFC lifts suspension of UBS Securities Hong Kong Limited acting as sponsor
  6. SFC issues restriction notice to a broker to freeze client accounts linked to suspected market manipulation
  7. SFC to commence proceedings for suspected market manipulation in the shares of China Ding Yi Feng and lifts trading suspension
  8. SFC suspends Shiu Yau Wah for five months

 

1.     SFC reprimands and fines FIL Investment Management (Hong Kong) Limited HKD 3.5 million for regulatory breaches

On 30 December 2019, the SFC has reprimanded and fined FIL Investment Management (Hong Kong) Limited HKD 3.5 million for regulatory breaches including unlicensed dealing in futures contracts, delay in reporting the breach to the SFC, as well as submitting incorrect information during an application.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR124

For the SFC’s circular dated 14 September 2018, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/circular/doc?refNo=18EC67

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=19PR124&appendix=0

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2.     SFC publicly censures CLSA Limited, CITIC Securities Brokerage (HK) Limited, Beijing Enterprises Holdings Limited and their representatives for breaching the Code on Share Buy-backs

On 30 December 2019, the SFC has publicly censured the following entities and individuals for buy-back transactions in the shares of Beijing Enterprises Holdings Limited conducted in 2016 in breach of the Code on Share Buy-backs:

  • CLSA Limited
  • Andrew James WALTERS
  • Stuart Richard WILSON
  • CITIC Securities Brokerage (HK) Limited (CSB)
  • Ka Yip Eddy LAU
  • King Yuen LAU
  • Stephanie LI
  • Beijing Enterprises Holdings Limited
  • Woon Cheung Eric TUNG

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR123

For the Executive Statement, please refer to:
https://www.sfc.hk/web/EN/files/CF/pdf/Public_censure/Executive%20statement%20E_FINAL%2020191230.pdf

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3.     SFC reprimands and fines RHB Securities Hong Kong Limited HKD 6.4 million

On 2 January 2020, the SFC has reprimanded and fined RHB Securities Hong Kong Limited HKD 6.4 million for its failures to comply with regulatory requirements on conflicts of interest and supervision of account executives.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR1

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR1&appendix=0

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4.     Court convicts unlicensed fund manager

On 6 January 2020, the SFC announced that the Eastern Magistrates’ Court on that day has convicted Mr. Yau Ka Fai for holding himself out as carrying on a business in asset management without a licence from the SFC.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR3

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5.     SFC lifts suspension of UBS Securities Hong Kong Limited acting as sponsor

On 14 January 2020, the SFC lifted the suspension of UBS Securities Hong Kong Limited to act as a sponsor for listing applications on the SEHK.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR4

For the SFC press release dated 14 March 2019, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR19

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6.     SFC issues restriction notice to a broker to freeze client accounts linked to suspected market manipulation

On 21 January 2020, the SFC has issued a restriction notice to China Fund Securities Limited, prohibiting it from dealing with or processing HK$170 million worth of assets held in six client accounts, which are related to suspected market manipulation in the shares of Hon Corporation Limited between November 2019 and early December 2019.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR7

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7.     SFC to commence proceedings for suspected market manipulation in the shares of China Ding Yi Feng and lifts trading suspensionCourt convicts unlicensed fund manager

On 22 January 2020, the SFC announced that it has decided to commence proceedings, for suspected market manipulation in the shares of China Ding Yi Feng Holdings Limited, against a number of individuals including one or more officers of China Ding Yi Feng.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR8

For the SFC press release dated 20 March 2019, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR23

For the SFC press release dated 25 June 2019, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR55

For the SFC Policy Statement on Disclosure of Certain Information to the Public, please refer to:
https://www.sfc.hk/web/EN/quick-links/others/disclosure-policy.html

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8.     SFC suspends Shiu Yau Wah for five months

On 29 January 2020, the SFC has announced its decision to suspend Mr. Shiu Yau Wah, an account executive at RHB Securities Hong Kong Limited, for five months from 24 January 2020 to 23 June 2020.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR9

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR9&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.

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