Newsletter – April 2017
- SFC reprimands and fines Guoyuan Securities Brokerage (Hong Kong) Limited HK$4.5 million for breaches of anti-money laundering guidelines
- Market Misconduct Tribunal sanctions Mayer Holdings Limited and its current and former senior management for late disclosure of inside information
- MMT finds no market misconduct in CITIC’s publication of a circular
- SFC reprimands and fines iSTAR International Futures Co. Limited HK$3 million over anti-money laundering-related internal control failures
- SFC bans Daniel Chen Chi Lik for life
- Retail investors convicted of illegal short selling
1. SFC reprimands and fines Guoyuan Securities Brokerage (Hong Kong) Limited HK$4.5 million for breaches of anti-money laundering guidelines
On 5 April 2017, the SFC has reprimanded Guoyuan Securities Brokerage (Hong Kong) Limited and fined it HK$4.5 million for its failure to conduct proper enquiries and scrutiny to mitigate the risks of money laundering and terrorist financing when processing third party fund transfers for clients between September 2010 and July 2012.
For more details, please refer to:
For a copy of the Statement of Disciplinary Action, please refer to:
2. Market Misconduct Tribunal sanctions Mayer Holdings Limited and its current and former senior management for late disclosure of inside information
On 5 April 2017, the Market Misconduct Tribunal (“MMT”) fined Mayer Holdings Limited and nine of its current and former senior executives a total of HK$10.2 million after they were found to have failed to disclose inside information as soon as reasonably practicable as required under the Securities and Futures Ordinance (“SFO”).
For more details, please refer to:
For a copy of the MMT Report (Part I), please refer to:
http://www.mmt.gov.hk/eng/reports/Mayer_Holdings_Limited_PartI_Report_e.pdf
For a copy of the MMT Report (Part II), please refer to:
http://www.mmt.gov.hk/eng/reports/Mayer_Holdings_Limited_PartII_Report_e.pdf
3. MMT finds no market misconduct in CITIC’s publication of a circular
On 10 April 2017, the MMT has handed down its decision that in the publication of a circular on 12 September 2008, CITIC Limited (“CITIC”) and five of its former executive directors had not disclosed false or misleading information that was likely to maintain, increase, reduce or stabilize the price of CITIC shares and so had not engaged in market misconduct.
For more details, please refer to:
For a copy of the MMT Report, please refer to:
http://www.mmt.gov.hk/eng/reports/Report_of_CITIC_e.pdf
4. SFC reprimands and fines iSTAR International Futures Co. Limited HK$3 million over anti-money laundering-related internal control failures
On 12 April 2017, the SFC has reprimanded iSTAR International Futures Co. Limited, now known as Rifa Futures Limited, and fined it HK$3 million over failures to comply with anti-money laundering regulatory requirements when processing third party fund transfers.
For more details, please refer to:
For a copy of the Statement of Disciplinary Action, please refer to:
5. SFC bans Daniel Chen Chi Lik for life
On 20 April 2017, the SFC has banned Mr Daniel Chen Chi Lik, a former staff of Bank of China (Hong Kong) Limited, from re-entering the industry for life following his conviction for theft by the Eastern Magistrates’ Court in October 2016.
For more details, please refer to:
6. Retail investors convicted of illegal short selling
On 27 April 2017, the Eastern Magistrates’ Court convicted Mr Cheng Chi Fei and Mr Wong Kin after they pleaded guilty to illegal short selling in the shares of China Agri-Products Exchange Limited (“China Agri-Products”).
For more details, please refer to:
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