Newsletter – February 2019

Content
  1. SFC revokes W. Falcon Asset Management (Asia) Limited’s licence
  2. Court dismisses judicial review application against SFC
  3. SFC issues restriction notices to three brokers to freeze client accounts related to suspected market misconduct
  4. SFC reprimands and fines Guosen Securities (HK) Brokerage Company, Limited HK$15.2 million for breaches of anti-money laundering regulatory requirements
  5. Former GEM-listed group finance manager jailed for four months for insider dealing
1.     SFC revokes W. Falcon Asset Management (Asia) Limited’s licence

On 4 February 2019, the SFC revoked the licence of W. Falcon Asset Management (Asia) Limited for window-dressing its liquid capital, breaching the terms of a restriction notice and failing to provide timely notification of the resignation of its director who engineered the window-dressing scheme

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR7

For the SFC’s press release dated 7 July 2017, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=17PR94

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR7&appendix=0

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2.      Court dismisses judicial review application against SFC

On 14 February 2019, the Court of First Instance dismissed a judicial review application brought by a SFC-licensed corporation and its responsible officer against the SFC in connection with an investigation of a suspected market manipulation in the shares of a Japan-listed company.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR8

For the Court’s judgment, please refer to:

https://legalref.judiciary.hk/lrs/common/ju/ju_frame.jsp?DIS=120120&currpage=T

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3.     SFC issues restriction notices to three brokers to freeze client accounts related to suspected market misconduct

On 15 February 2019, the SFC issued restriction notices to Changjiang Securities Brokerage (HK) Limited, Haitong International Securities Company Limited and Kingston Securities Limited, prohibiting them from dealing with or processing certain assets held in various client accounts which are related to the suspected disclosure of false or misleading financial information in various announcements, annual results and annual reports of a listed company, which was likely to induce transactions.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR9

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4.      SFC reprimands and fines Guosen Securities (HK) Brokerage Company, Limited HK$15.2 million for breaches of anti-money laundering regulatory requirements

On 18 February 2019, the SFC reprimanded Guosen Securities (HK) Brokerage Company, Limited and fined it HK$15.2 million for failures in complying with anti-money laundering and counter-terrorist financing regulatory requirements when handling third party fund deposits.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR10

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=19PR10&appendix=0

5.      Former GEM-listed group finance manager jailed for four months for insider dealing

On 19 February 2019, the Eastern Magistrates’ Court sentenced Mr Au-Yeung Siu Pang, a former group finance manager of China CBM Group Company Limited, to four months of imprisonment and fined him HK$120,000 after he was convicted of insider dealing in China CBM shares in a prosecution brought by the SFC.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR11

For the SFC’s press release dated 7 September 2017, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=17PR120

For the SFC’s press release dated 8 December 2017, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=17PR145

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

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