Regulatory News (Jul 2020)

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Newsletter – June 2020

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Content
  1. Court convicts and fines former director and shareholder of Wonderful Wealth Group Limited for unlicensed activities
  2. SFC reprimands and fines Potomac Capital Limited HK$800,000 for breaching Financial Resources Rules
  3. SFC publicly censures Mr. Fu Kwan for breach of the Takeovers Code
  4. SFC publicly criticises CICC Financial Trading Limited and China International Capital Corporation Limited for breaches of the Takeovers Code
  5. SFC reprimands and fines Guotai Junan Securities (Hong Kong) Limited HK$25.2 million for breaches relating to anti-money laundering and other regulatory requirements
  6. SFC bans former responsible officer of Guosen Securities (HK) Brokerage Company, Limited for 12 months

1. Court convicts and fines former director and shareholder of Wonderful Wealth Group Limited for unlicensed activities

On 4 June 2020, The Eastern Magistrates’ Court convicted Mr. Chong Kin Ting, former director and shareholder of Wonderful Wealth Group Limited, of holding out as carrying on a business of dealing in futures contracts and asset management without a licence in a criminal prosecution brought by SFC.

Chong, who pleaded guilty to all four charges, was fined HK$8,000 and ordered to pay SFC’s investigation costs.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR50

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2. SFC reprimands and fines Potomac Capital Limited HK$800,000 for breaching Financial Resources Rules

On 8 June 2020, SFC has reprimanded and fined Potomac Capital Limited HK$800,000 for failures to comply with the Financial Resources Rules.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR51

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR51&appendix=0

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3. SFC publicly censures Mr. Fu Kwan for breach of the Takeovers Code

On 11 June 2020, SFC has publicly censured Mr. Fu Kwan, the chairman of Macrolink Capital Holdings Limited, for acquiring the company’s shares within six months after the close of an offer at prices above the offer price in breach of Rule 31.3 of the Takeovers Code.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR55

For the Executive Statement, please refer to:
https://www.sfc.hk/web/EN/files/CF/pdf/Public_censure/Public%20Censure%20(ENG)%2020200611.pdf

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4. SFC publicly criticises CICC Financial Trading Limited and China International Capital Corporation Limited for breaches of the Takeovers Code

On 18 June 2020, SFC has publicly criticised CICC Financial Trading Limited and China International Capital Corporation Limited for breaches of the Takeovers Code.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR56

For the Executive Statement, please refer to:
https://www.sfc.hk/web/EN/files/CF/pdf/Public_censure/CICC_ES_18%20Jun%2020%20(Eng).pdf

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5. SFC reprimands and fines Guotai Junan Securities (Hong Kong) Limited HK$25.2 million for breaches relating to anti-money laundering and other regulatory requirements

On 22 June 2020, SFC has reprimanded and fined Guotai Junan Securities (Hong Kong) Limited HK$25.2 million for multiple internal control failures and regulatory breaches in connection with anti-money laundering, handling of third-party fund transfers and placing activities, as well as detection of wash trades and late reporting.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR58

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR58&appendix=0

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6. SFC bans former responsible officer of Guosen Securities (HK) Brokerage Company, Limited for 12 months

On 23 June 2020, SFC has prohibited Ms. Joanna Chu Lai Wa, former responsible officer, director and head of dealing of Guosen Securities (HK) Brokerage Company, Limited from re-entering the industry for 12 months from 23 June 2020 to 22 June 2021.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR57

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR57&appendix=0

For the SFC circular dated 18 February 2019, please refer to: 
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR10

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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.

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Newsletter – May 2020

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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.

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 (Jun 2020)

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Regulatory News (May 2020)

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Newsletter – April 2020

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Content
  1. SFC sanctions China Rise Securities Asset Management Company Limited’s former responsible officers
  2. SFC issues restriction notice to Agg. Asset Management Limited
  3. SFC reprimands and fines HSBC Investment Funds (Hong Kong) Limited and HSBC Global Asset Management (Hong Kong) Limited HK$3.5 million for regulatory breaches over funds’ cash management
  4. SFC reprimands and fines BOCOM International Securities HK$19.6 million for internal control failures
1.     SFC sanctions China Rise Securities Asset Management Company Limited’s former responsible officers

On 31 March 2020, SFC has banned Mr. Sammy Shiu Kin Keung, former chief executive officer and responsible officer of China Rise Securities Asset Management Company Limited, from re-entering the industry for 28 months from 30 March 2020 to 29 July 2022.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR27

For the SFC press release dated 9 June 2017, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=17PR79

For the SFC press release dated 31 October 2019, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR101

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR27&appendix=0

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2.     SFC issues restriction notice to Agg. Asset Management Limited

On 3 April 2020, SFC has issued a restriction notice to Agg. Asset Management Limited because of doubts over company’s reliability, integrity, and ability to carry on regulated activities competently, honestly and fairly, and hence, its fitness and properness to remain licensed.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR31

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3.     SFC reprimands and fines HSBC Investment Funds (Hong Kong) Limited and HSBC Global Asset Management (Hong Kong) Limited HK$3.5 million for regulatory breaches over funds’ cash management

On 7 April 2020, SFC has reprimanded and fined HSBC Investment Funds (Hong Kong) Limited and HSBC Global Asset Management (Hong Kong) Limited HK$3.5 million for breaches of regulatory requirements in relation to cash management for SFC-authorized funds.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR32

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR32&appendix=0

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4.     SFC reprimands and fines BOCOM International Securities HK$19.6 million for internal control failures

On 20 April 2020, SFC has reprimanded and fined BOCOM International Securities Limited a total of HK$19.6 million for a range of regulatory breaches, including failures concerning the handling of third party fund deposits and the maintenance and implementation of a margin lending and margin call policy.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR36

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR36&appendix=0

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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 2020

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Content
  1. SFC bans Chan Tan Lo for 14 months
  2. SFC bans Mo Shau Wah for life
  3. Market Misconduct Tribunal finds Magic Holdings International Limited and its directors culpable of late disclosure of inside information
1.     SFC bans Chan Tan Lo for 14 months

On 19 March 2020, SFC has banned Ms. Chan Tan Lo, a former relationship manager of BOCI Securities Limited for 14 months from 19 March 2020 to 18 May 2021.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR22

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR22&appendix=0

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2.     SFC bans Mo Shau Wah for life

On 23 March 2020, SFC has banned Ms. Mo Shau Wah, a former account executive of China Pacific Securities Limited, from re-entering the industry for life following her criminal conviction.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR23

For the reason for sentence, please refer to:
https://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=121814&QS=%24%28HCCC%2C12%5C%7C%5C13%2F2017%29&TP=RS

For the SFC press release dated 1 March 2013, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=13PR14

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3.     Market Misconduct Tribunal finds Magic Holdings International Limited and its directors culpable of late disclosure of inside information

On 25 March 2020, The Market Misconduct Tribunal found that Magic Holdings International Limited and five of its’ directors culpable of the company’s failure to disclose in a timely manner inside information on L’Oréal S.A.’s proposed acquisition of Magic Holdings International Limited in 2013, as required under the corporate disclosure requirements of the SFO.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR24

For the SFC circular dated 15 May 2018, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR49

For the Report of the Market Misconduct Tribunal of Hong Kong, please refer to:
https://www.mmt.gov.hk/eng/reports/Magic_Report%20_18.3.2020.pdf

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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 (Apr 2020)

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Newsletter – February 2020

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Content
  1. SFC bans Christopher Tse for 12 months
  2. SFC reprimands and fines BMI Securities Limited HK$3.7 million and suspends its responsible officer for breaches of anti-money laundering regulatory requirements
  3. SFC reprimands and fines Capital Global Management Limited HK$1.5 million
  4. Court dismisses challenge to SFC’s investigative powers

 

1.     SFC bans Christopher Tse for 12 months

On 6 February 2020, the SFC has banned Mr. Christopher Tse, a former research analyst at RHB Securities Hong Kong Limited, from re-entering the industry for 12 months from 31 January 2020 to 30 January 2021.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR12

For the SFC’s circular dated 14 September 2018, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR1

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR12&appendix=0

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2.     SFC reprimands and fines BMI Securities Limited HK$3.7 million and suspends its responsible officer for breaches of anti-money laundering regulatory requirements

On 11 February 2020, the SFC has reprimanded and fined BMI Securities Limited HK$3.7 million for failures in complying with anti-money laundering and counter-terrorist financing regulatory requirements.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR15

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR15&appendix=0

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3.     SFC reprimands and fines Capital Global Management Limited HK$1.5 million

On 14 February 2020, the SFC has reprimanded and fined Capital Global Management Limited HK$1.5 million for its failures to ensure compliance with applicable laws and regulations in distributing investment funds and offering investment advice in Taiwan, and to adequately supervise the business activities of its representatives to ensure such compliance.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR16

For the SFC’s circular dated 28 January 2014, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/circular/intermediaries/supervision/doc?refNo=14EC4

For the Statement of Disciplinary Action, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=20PR16&appendix=0

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4.     Court dismisses challenge to SFC’s investigative powers

On 18 February 2020, the Court of First Instance has dismissed judicial review applications against the SFC in connection with a search operation it conducted for ongoing investigations into suspected breaches of the Securities and Futures Ordinance.

For more details, please refer to:
https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=20PR17

For the Judgement Statement, please refer to:
https://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=126907&QS=%2B&TP=JU

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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 (Mar 2020)

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