Newsletter – July 2018
- 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
- DBA Telecommunication (Asia) Holdings Limited convicted of making false or misleading announcement
- SFC reprimands and fines CCB International Capital Limited HK$24 million for sponsor failures
- SFC reprimands and fines Citigroup Global Markets Asia Limited HK$4 million for alternative liquidity pool failures
- SFC bans Joseph Hsu Kar Hing for three years
- SFC bans Poon Chun Hing for 30 months
- SFC reprimands and fines HSBC Broking Securities (Asia) Limited HK$9.6 million for regulatory breaches over bond sale
- Broker acquitted of illegal short selling
- Account executive convicted and fined for illegal short selling
- 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:
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
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:
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:
For a copy of the Statement of Disciplinary Action, please refer to:
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:
For a copy of the Statement of Disciplinary Action, please refer to:
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:
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:
For a copy of the Statement of Disciplinary Action, please refer to:
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:
For a copy of the Statement of Disciplinary Action, please refer to:
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:
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:
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]