Newsletter – May 2018

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Content
  1. Licence applicant convicted of providing false information to SFC
  2. SFC commences MMT proceedings against Magic Holdings International Limited and its directors for late disclosure of inside information
  3. SFC reprimands and fines Citigroup Global Markets Asia Limited HK$57 million for sponsor failures
  4. SFC reprimands and fines Noah Holdings (Hong Kong) Limited HK$5 million for regulatory breaches

1.        Licence applicant convicted of providing false information to SFC

On 11 May 2018, the Eastern Magistrates’ Court convicted Mr Lui Ho Yeung after he pleaded guilty to two counts of making false or misleading representations in support of his licence applications to the SFC.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR48

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2.      SFC commences MMT proceedings against Magic Holdings International Limited and its directors for late disclosure of inside information

On 15 May 2018, the SFC has commenced proceedings in the Market Misconduct Tribunal against Magic Holdings International Limited and its nine directors for failing to disclose inside information as soon as reasonably practicable on the potential acquisition of its issued shares by L’Oréal S.A., a French cosmetics group in 2013.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR49

For a copy of the SFC’s Notice commencing the MMT proceedings, please refer to:

http://www.mmt.gov.hk/eng/rulings/Magic_Holdings_15052018_e.pdf

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3.        SFC reprimands and fines Citigroup Global Markets Asia Limited HK$57 million for sponsor failures

On 17 May 2018, the SFC has reprimanded and fined Citigroup Global Markets Asia Limited (“Citi”) HK$57 million after resolving concerns with Citi over its discharge of duties as a sponsor in relation to the listing application of Real Gold Mining Limited.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR51

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR51&appendix=0

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4.         SFC reprimands and fines Noah Holdings (Hong Kong) Limited HK$5 million for regulatory breaches

On 29 May 2018, the SFC has publicly reprimanded and fined Noah Holdings (Hong Kong) Limited (Noah HK) HK$5 million over Noah HK’s internal system and control failures in its sale and distribution of investment products.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR57

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR57&appendix=0

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] 

Newsletter – April 2018

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Content
  1. SFC seeks orders to disqualify former senior executives of Far East Holdings International Limited
  2. SFC commences MMT proceedings against Fujikon and its senior executives for late disclosure of inside information
  3. SFC reprimands and fines Instinet Pacific Limited HK$17.3 million for failures concerning its electronic and algorithmic trading systems and alternative liquidity pool
  4. SFC reprimands and fines CN Capital Management Limited and responsible officers HK$1.2 million over regulatory breaches

1.        SFC seeks orders to disqualify former senior executives of Far East Holdings International Limited

On 10 April 2018, the SFC has commenced legal proceedings in the Court of First Instance to seek disqualification orders against Mr Duncan Chiu, former managing director and chief executive officer of Far East Holdings International Limited.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR37

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2.      SFC commences MMT proceedings against Fujikon and its senior executives for late disclosure of inside information

On 10 April 2018, the SFC has commenced proceedings in the Market Misconduct Tribunal against Fujikon Industrial Holdings Limited for failing to disclose inside information as soon as reasonably practicable on the discontinuance of headphone production for one of the company’s top customers.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR38

For a copy of the SFC’s Notice commencing the MMT proceedings, please refer to:

http://www.mmt.gov.hk/eng/rulings/Fujikon_28032018_e.pdf

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3.        SFC reprimands and fines Instinet Pacific Limited HK$17.3 million for failures concerning its electronic and algorithmic trading systems and alternative liquidity pool

On 13 April 2018, the SFC has reprimanded and fined Instinet Pacific Limited (“IPL”) HK$17.3 million after resolving concerns over IPL’s breaches of the Code of Conduct in relation to its electronic and algorithmic trading systems and alternative liquidity pool.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR40

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR40&appendix=0

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4.         SFC reprimands and fines CN Capital Management Limited and responsible officers HK$1.2 million over regulatory breaches

On 24 April 2018, the SFC has reprimanded CN Capital Management Limited and fined it HK$1,000,000 for failing to maintain an effective compliance function and satisfactory internal controls concerning employee account dealing.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR42

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR42&appendix=0

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] 

Newsletter – March 2018

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Content
  1. Solicitor and sisters granted leave to appeal to Court of Final Appeal
  2. SFC issues restriction notice to broker to freeze client account linked to suspected insider dealing
  3. SFC reprimands and fines CLSA Limited HK$9 million over internal control failures
  4. SFC reprimands and fines Deutsche Bank AKTIENGESELLSCHAFT and Deutsche Securities Asia Limited HK$8.3 million for regulatory breaches
  5. SFC’s regulatory action halts ICO to Hong Kong public
  6. SFC reprimands and fines UBS Securities Asia Limited HK$4.5 million in relation to facilitation trading activities
  7. 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:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR22

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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:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR23

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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:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR25

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR25&appendix=0

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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:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR26

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR26&appendix=0

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:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR29

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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:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR30

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR30&appendix=0

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7.        Court convicts Chan Chi Kit of unlicensed dealing

On 22 March 2018, the Eastern Magistrates’ Court today convicted Mr Chan Chi Kit of unlicensed dealing in securities in a prosecution brought by the SFC.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR31

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] 

Regulatory News (Jul 2018)

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Regulatory News (Jun 2018)

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Regulatory News (May 2018)

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Regulatory News (Apr 2018)

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CompliancePlus partners with Oriel College, Oxford to promote cross border exchanges

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Regulatory News (Mar 2018)

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Newsletter – February 2018

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Content
  1. Court of Final Appeal to hear Moody’s case
  2. Court orders Qunxing and former directors to compensate investors over disclosure of false or misleading information
  3. SFC reprimands and fines Credit Suisse (Hong Kong) Limited, Credit Suisse Securities (Hong Kong) Limited and Credit Suisse AG HK$39.3 million for regulatory breaches
  4. SFC reprimands and fines Interactive Brokers Hong Kong Limited HK$4.5 million for failures concerning its electronic and algorithmic trading systems
  5. Court orders Titan’s former senior executive and his mother to make payments to investors over insider dealing in Titan shares
  6. SFC obtains disqualification and compensation orders against former chairman and directors of Starlight

1.         Court of Final Appeal to hear Moody’s case

On 7 February 2018, the Court of Final Appeal granted leave to Moody’s Investors Service Hong Kong Limited’s to take the case to the Court of Final Appeal in the matter of the SFC disciplinary action in relation to a special comment report it published in 2011.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR11

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2.         Court orders Qunxing and former directors to compensate investors over disclosure of false or misleading information

On 7 February 2018, the Court of First Instance has granted orders sought by the SFC in its proceedings against Qunxing Paper Holdings Company Limited (“Qunxing”), its former chairman and vice-chairman – Mr Zhu Yu Guo and his son, Mr Zhu Mo Qun – as well as its subsidiary Best Known Group Limited to compensate investors who subscribed for Qunxing shares in its initial public offering or purchased them in the secondary market between 2007 and 2011.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR10

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3.    SFC reprimands and fines Credit Suisse (Hong Kong) Limited, Credit Suisse Securities (Hong Kong) Limited and Credit Suisse AG HK$39.3 million for regulatory breaches

On 8 February 2018, the SFC has resolved its concerns with Credit Suisse (Hong Kong) Limited, Credit Suisse Securities (Hong Kong) Limited and Credit Suisse AG over internal control failures.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR12

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR12&appendix=0

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4.         SFC reprimands and fines Interactive Brokers Hong Kong Limited HK$4.5 million for failures concerning its electronic and algorithmic trading systems

On 14 February 2018, the has reprimanded and fined Interactive Brokers Hong Kong Limited (“IBHK”) HK$4.5 million after resolving concerns over IBHK’s breaches of the Code of Conduct in its execution of market orders using electronic and algorithmic trading systems.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR14

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

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=18PR14&appendix=0

5.         Court orders Titan’s former senior executive and his mother to make payments to investors over insider dealing in Titan shares

On 23 February 2018, the Court of First Instance has ordered a former senior executive of an affiliate of Titan Petrochemical Group Limited (“Titan”), Mr Augustine Cheong Kai Tjieh and his mother, Ms Gan Ser Soon to pay investors after the Market Misconduct Tribunal (“MMT”) earlier found the pair engaged in insider dealing in the shares of Titan in 2012

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR16

For the MMT report, please refer to:

http://www.mmt.gov.hk/eng/reports/Report_of_Titan_e.pdf

6.         SFC obtains disqualification and compensation orders against former chairman and directors of Starlight

On 27 February 2018, the Court of First Instance has ordered Starlight Culture Entertainment Group Limited’s (“Starlight”) former chairman Mr Tong Shek Lun and two former executive directors, Ms Kinny Ko Lai King and Ms Regina Chung Wai Yu, to pay a sum of US$890,241.37 as compensation to Starlight following findings of misconduct in connection with their handling of the company’s disposal of subsidiaries in September 2008.

For more details, please refer to:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=18PR19

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]