Newsletter – June 2017
- Court of Appeal upholds SFAT’s ruling on SFC’s disciplinary action against Moody’s over Red Flags Report
- SFC commences insider dealing prosecutions over proposed privatisation of Integrated Distribution Services Group
- Former responsible officer convicted and fined for illegal short selling
- SFC issues restriction notice on IDS Forex HK Limited
- SFC bans Li Bo for eight months for failure in disclosing his personal trading
- SFC suspends former responsible officer of iSTAR International Futures Co. Limited for six months for failure in anti-money laundering
- SFC bans Fok Chi Kin for eight months for transferring proprietary information
- Market Misconduct Tribunal sanctions Greencool’s former chairman and senior executives for disclosure of false or misleading information
1. Court of Appeal upholds SFAT’s ruling on SFC’s disciplinary action against Moody’s over Red Flags Report
On 8 June 2017, the Court of Appeal has dismissed an appeal by Moody’s Investors Service Hong Kong Limited (“Moody’s”) against the Securities and Futures Appeals Tribunal’s decision to uphold the SFC disciplinary action in relation to a special comment report published by Moody’s in 2011.
For more details, please refer to:
For a copy of the Court of Appeal’s judgment, please refer to:
http://legalref.judiciary.hk/lrs/common/ju/ju_frame.jsp?DIS=109835&currpage=T
2. SFC commences insider dealing prosecutions over proposed privatisation of Integrated Distribution Services Group
On 9 June 2017, the SFC has commenced criminal proceedings in the Eastern Magistrates’ Court against Mr Lam Yik Tung, Mr Chan Lit Chun and Mr Anson Mui Ka Leung for alleged insider dealing in the shares of Integrated Distribution Services Group Limited.
For more details, please refer to:
3. Former responsible officer convicted and fined for illegal short selling
On 9 June 2017, the Eastern Magistrates’ Court has convicted Mr Sammy Shiu Kin Keung after he pleaded guilty to illegal short selling in the shares of Share Economy Group Limited (formerly known as Vitop Bioenergy Holdings Limited), Global Tech (Holdings) Limited and China Ocean Industry Group Limited (formerly known as China Ocean Shipbuilding Industry Group Limited) on 14 occasions.
For more details, please refer to:
http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=17PR79
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4. SFC issues restriction notice on IDS Forex HK Limited
On 12 June 2017, the SFC issued a Restriction Notice on IDS Forex HK Limited prohibiting the firm from carrying on all activities for which it is licensed, disposing of or dealing with any assets held by it or held on behalf of its clients, and assisting, counselling or procuring another person to dispose of or deal with any such property without the SFC’s prior written consent.
For more details, please refer to:
http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=17PR81
For a copy of the Restriction Notice is available on the SFC’s website:
5. SFC bans Li Bo for eight months for failure in disclosing his personal trading
On 13 June 2017, the SFC has banned Mr Li Bo, a former employee of The Hongkong and Shanghai Banking Corporation Limited, from re-entering the industry for eight months from 9 June 2017 to 8 February 2018 for breaching the SFC’s Code of Conduct due to his failure to disclose to his employer his personal trading account and beneficial interests in the securities accounts of his friend. Mr Li Bo also failed to obtain prior approval for his securities trading transactions in his friend’s accounts which deprived his employer the opportunity to monitor his trading activities.
For more details, please refer to:
For a copy of the Statement of Disciplinary Action, please refer to:
6. SFC suspends former responsible officer of iSTAR International Futures Co. Limited for six months for failure in anti-money laundering
On 19 June 2017, the SFC has suspended Mr Wu Biwei, former responsible officer and managing director of iSTAR International Futures Co. Limited, now known as Rifa Futures Limited, for six months from 16 June 2017 to 15 December 2017 for his failure to have proper safeguards in place against the risks of money laundering and terrorist financing associated with third party fund transfers.
For more details, please refer to:
For a copy of the Statement of Disciplinary Action, please refer to:
7. SFC bans Fok Chi Kin for eight months for transferring proprietary information
On 22 June 2017, the SFC has banned Mr Fok Chi Kin from re-entering the industry for eight months from 20 June 2017 to 19 February 2018 due to transferring proprietary information and client data of JPMorgan Funds (Asia) Limited (“JPFL”) without permission on several occasions prior to and immediately after his departure from JPFL.
For more details, please refer to:
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=17PR86&appendix=0
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8. Market Misconduct Tribunal sanctions Greencool’s former chairman and senior executives for disclosure of false or misleading information
On 26 June 2017, the Market Misconduct Tribunal (“MMT”) today ordered the former chairman and chief executive officer of Greencool Technology Holdings Limited, Mr Gu Chujun, to disgorge HKD 481,969,785 of profit from his market misconduct. This is the largest disgorgement order amount ever imposed by the MMT to date.
For more details, please refer to:
For a copy of the MMT report, please refer to:
(Part 1)
http://www.mmt.gov.hk/eng/reports/Greencool_Technology_Holdings_Limited_Report_e.pdf
(Part 2)
http://www.mmt.gov.hk/eng/reports/Greencool_Technology_Holdings_Limited_Report_PartII_e.pdf
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