Newsletter – November 2017

Content

  1. SFC bans Yeung Leung Yuen for three years
  2. Court of Appeal upholds SFC’s case of insider dealing and fraud against solicitors
  3. HSBC Private Bank (Suisse) SA fined HK$400 million for systemic failures in selling structured products
  4. SFC fines Danny Fung Kwong Shing and bans him for life

 

1. Court of Appeal upholds SFC’s case of insider dealing and fraud against solicitors

On 7 November 2017, the SFC has banned Mr Yeung Leung Yuen, a former relationship manager of Citibank (Hong Kong) Limited, from re-entering the industry for three years for conducting unauthorized transactions in a client’s securities account.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR134

For a copy of the Statement of Disciplinary Action report, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=17PR134&appendix=0

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2. Court of Appeal upholds SFC’s case of insider dealing and fraud against solicitors

On 9 November 2017, the Court of Appeal upheld the decision of the Court of First Instance which had ruled in favour of an insider dealing and fraud case brought by the SFC against two solicitors – Ms Betty Young Bik Fung and Mr Eric Lee Kwok Wa – and Lee’s two sisters.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR135; and

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=16PR5

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3. HSBC Private Bank (Suisse) SA fined HK$400 million for systemic failures in selling structured products

On 21 November 2017, HSBC Private Bank (Suisse) SA, the Hong Kong branch of the Switzerland-based private banking business of HSBC Group, has been fined a record sum of HK$400 million after the Securities and Futures Appeals Tribunal (“SFAT”) upheld the SFC’s disciplinary action against the bank for material systemic failures in relation to the sale of derivative products – namely, Lehman Brothers-related Notes and Leveraged Forward Accumulators – in the run-up to the global financial crisis in 2008.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=17PR138

For the SFAT’s Reasons for Determination, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=17PR134&appendix=0

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4. SFC fines Danny Fung Kwong Shing and bans him for life

On 23 November 2017, the SFC has banned Mr Danny Fung Kwong Shing, a former account executive of Fulbright Securities Limited (“Fullbright”), from re-entering the industry for life and fined him HK$542,071 for carrying out unauthorized trading activities in client’s accounts during his tenure at Fullbright.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=17PR140

For a copy of the Statement of Disciplinary Action, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=17PR140&appendix=0

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

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