Newsletter – July 2019

1.     SFC bans Goldman Sachs (Asia) L.L.C. former responsible officer Tim Leissner for life

On 3 July 2019, the SFC has banned Mr. Tim Leissner, a former responsible officer of Goldman Sachs (Asia) L.L.C., from re-entering the industry for life in connection with his crimes relating to 1Malaysia Development Berhad.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR60

For the press release published by the US DOJ on 1 November 2018, please refer to:

https://www.justice.gov/opa/pr/malaysian-financier-low-taek-jho-also-known-jho-low-and-former-banker-ng-chong-hwa-also-known

For the Information filed in the United States District Court for the Eastern District of New York (Cr. No. 18-CR-439), please refer to:

https://www.justice.gov/usao-edny/press-release/file/1106971/download

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2.     SFC reprimands and fines Celestial Commodities Limited and Celestial Securities Limited HK$6.3 million for mishandling client money

On 10 July 2019, the SFC has reprimanded Celestial Commodities Limited and Celestial Securities Limited and fined them HK$4.9 million and HK$1.4 million, respectively for regulatory breaches and internal control failures relating to mishandling of client money.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR62

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR62&appendix=0

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3.     SFC bans Song Peng for 10 months

On 12 July 2019, the SFC has banned Mr. Song Peng, a former account executive of Phillip Securities (Hong Kong) Limited, from re-entering the industry for 10 months from 12 July 2019 to 11 May 2020 for breach of the SFC’s Code of Conduct.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR66

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR66&appendix=0

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4.     SFC reprimands and fines Glory Sun Securities Limited HK$1.2 million and suspends its current and former responsible officers

On 15 July 2019, the SFC has reprimanded and fined Glory Sun Securities Limited HK$1.2 million for failing to diligently supervise its account executives and implement effective controls to ensure compliance with the short selling requirements.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR65

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR65&appendix=0

5.     SFC suspends Hui Kwok Piu for illegal short selling

On 15 July 2019, the SFC suspended the licence of Mr. Hui Kwok Piu for 16 months from 12 July 2019 to 11 November 2020. The disciplinary action follows Hui’s conviction for illegal short selling in the shares of Coslight Technology International Group Limited in contravention of the Securities and Futures Ordinance <-can add to fifth news for more elaboration.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR64

6.     SFC reprimands and fines Lee’s Securities Company Limited HK$520,000 for internal control failings

On 15 July 2019, the SFC has reprimanded and fined Lee’s Securities Company Limited HK$520,000 for internal control failings relating to segregation of duties and handling of client securities.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR67

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR67&appendix=0

7.     Court sets pre-trial review for unlicensed activities prosecution

On 18 July 2019, the Eastern Magistrates’ Court fixed the pre-trial review date for prosecution against Brilliance Capital Management Limited and its director Mr Law Sai Hung after they pleaded not guilty to the charges by the SFC of having held out themselves as carrying on a business in regulated activity without a SFC licence.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR68

8.     SFC-ICAC operation leads to charging of ex-Convoy Global Executive Directors and broker’s general manager

On 22 July 2019, the Independent Commission Against Corruption (ICAC) charged five other individuals with conspiracy to defraud following the joint operation of the SFC and the ICAC in December 2017.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR72

For the SFC’s press release dated 16 May 2019, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR39

For the ICAC’s press release dated 16 May 2019, please refer to:

https://www.icac.org.hk/en/press/index_id_730.html

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

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