Newsletter – May 2020

Content
  1. SFC obtains court order against Shandong Molong Petroleum Machinery Company Limited
  2. SFC reprimands and fines Mega International Commercial Bank Co., Ltd. HK$7 million for regulatory breaches over CIS sale
  3. SFC obtains disqualification orders against former directors of EganaGoldpfeil (Holdings) Ltd
  4. SFC reprimands and fines Southwest Securities (HK) Brokerage Limited HK$5 million for breaches of anti-money laundering regulatory requirements
  5. SFC reprimands and fines Convoy Asset Management Limited HK$6.4 million for regulatory breaches over bond recommendation
  6. SFC seeks court order to wind up Combest Holdings Limited
1.     SFC obtains court order against Shandong Molong Petroleum Machinery Company Limited

On 05 May 2020, SFC has obtained a court order in the Court of First Instance requiring Shandong Molong Petroleum Machinery Company Limited to reconstitute its audit committee and to appoint an independent external auditor to review its internal control and financial reporting procedures after the company accepted that it had falsely and substantially inflated its financial position in six results announcements.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR41

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2.     SFC reprimands and fines Mega International Commercial Bank Co., Ltd. HK $7 million for regulatory breaches over CIS sale

On 07 May 2020, SFC has reprimanded and fined Mega International Commercial Bank Co., Ltd HK$7 million over company’s internal system and control failures in relation to the sale of collective investment schemes.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR42

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR42&appendix=0

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3.     SFC obtains disqualification orders against former directors of EganaGoldpfeil (Holdings) Ltd

On 11 May 2020, SFC has obtained disqualification orders in the Court of First Instance against three former directors of EganaGoldpfeil (Holdings) Ltd for their roles in the company’s misapplication of funds.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR43

For the press release dated 1 August 2011, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=11PR88

For the summary of the SFC’s petition, please refer to:
https://www.sfc.hk/web/doc/EN/general/general/press_release/11/11PR88_petition.pdf

For the relevant judgement, please refer to:
https://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=127726&QS=%2B&TP=JU

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4.     SFC reprimands and fines Southwest Securities (HK) Brokerage Limited HK$5 million for breaches of anti-money laundering regulatory requirements

On 18 May 2020, SFC has reprimanded and fined Southwest Securities (HK) Brokerage Limited HK$5 million for failures in complying with anti-money laundering and counter-terrorist financing regulatory requirements in 2016.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR45

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR45&appendix=0

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5.     SFC reprimands and fines Convoy Asset Management Limited HK$6.4 million for regulatory breaches over bond recommendation

On 19 May 2020, SFC has reprimanded and fined Convoy Asset Management Limited HK$6.4 million for control failures in solicitation and recommendation of bonds to clients.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR47

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR47&appendix=0

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6.     SFC seeks court order to wind up Combest Holdings Limited

On 21 May 2020, SFC has presented a petition to the Court of First Instance to wind up Combest Holdings Limited and to disqualify the company’s executive directors, Mr. Liu Tin Lap and Mr. Lee Man To, and a suspected shadow director, Mr. Ng Kwok Fai under the Securities and Future Ordinance to protect the interest of Combest’s shareholders, creditors and the investing public.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR48

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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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