Newsletter – March 2018
- Solicitor and sisters granted leave to appeal to Court of Final Appeal
- SFC issues restriction notice to broker to freeze client account linked to suspected insider dealing
- SFC reprimands and fines CLSA Limited HK$9 million over internal control failures
- SFC reprimands and fines Deutsche Bank AKTIENGESELLSCHAFT and Deutsche Securities Asia Limited HK$8.3 million for regulatory breaches
- SFC’s regulatory action halts ICO to Hong Kong public
- SFC reprimands and fines UBS Securities Asia Limited HK$4.5 million in relation to facilitation trading activities
- Court convicts Chan Chi Kit of unlicensed dealing
1. Solicitor and sisters granted leave to appeal to Court of Final Appeal
On 6 March 2018, the Court of Appeal granted leave for Mr Lee Kwok Wa, a solicitor, and his two sisters to take their case to the Court of Final Appeal in relation to the interpretation of section 300 of the Securities and Futures Ordinance arising from a case on fraudulent or deceptive transactions involving securities, subject to a final approval by the Court of Final Appeal.
For more details, please refer to:
2. SFC issues restriction notice to broker to freeze client account linked to suspected insider dealing
On 9 March 2018, the SFC has issued a restriction notice to Interactive Brokers Hong Kong Limited, prohibiting it from dealing with or processing certain assets held in a client account which is related to suspected insider dealing in the shares of Bloomage BioTechnology Corporation Limited between 22 May and 15 June 2017.
For more details, please refer to:
3. SFC reprimands and fines CLSA Limited HK$9 million over internal control failures
On 13 March 2018, the SFC has reprimanded and fined CLSA Limited (“CLSA”) HK$9 million after resolving concerns over CLSA’s internal control failures in relation to its client facilitation services and reporting obligation under the Code of Conduct.
For more details, please refer to:
For a copy of the Statement of Disciplinary Action, please refer to:
4. SFC reprimands and fines Deutsche Bank AKTIENGESELLSCHAFT and Deutsche Securities Asia Limited HK$8.3 million for regulatory breaches
On 13 March 2018, the SFC has resolved its concerns with Deutsche Bank AKTIENGESELLSCHAFT and its wholly-owned subsidiary Deutsche Securities Asia Limited over regulatory breaches related to short position reporting, unlicensed regulated activities and segregation of client monies.
For more details, please refer to:
For a copy of the Statement of Disciplinary Action, please refer to:
5. SFC’s regulatory action halts ICO to Hong Kong public
On 19 March 2018, an initial coin offering (“ICO”) issuer Black Cell Technology Limited has halted its ICO to the Hong Kong public and agreed to unwind ICO transactions for Hong Kong investors by returning them the relevant tokens following regulatory action by the SFC over concerns that Black Cell had engaged in potential unauthorized promotional activities and unlicensed regulated activities.
For more details, please refer to:
6. SFC reprimands and fines UBS Securities Asia Limited HK$4.5 million in relation to facilitation trading activities
On 21 March 2018, SFC has reprimanded and fined UBS Securities Asia Limited HK$4.5 million for failing to put in place effective controls to record transactions and client consents in relation to its facilitation trading activities.
For more details, please refer to:
For a copy of the Statement of Disciplinary Action, please refer to:
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