Newsletter – March 2019

Content
  1. SFC seeks disqualification orders against former directors of Luxey International (Holdings) Limited
  2. SFC fines UBS HK$375 million and suspends its licence for one year for sponsor failures
  3. SFC reprimands and fines Standard Chartered Securities HK$59.7 million for sponsor failures
  4. SFC reprimands and fines Morgan Stanley Asia Limited HK$224 million for sponsor failures
  5. SFC reprimands and fines Merrill Lynch Far East Limited HK$128 million for sponsor failures
  6. SFC reprimands and fines BOCI Securities Limited HK$10 million for regulatory breaches in selling investment products
  7. SFC issues restriction notices to nine brokers to freeze client accounts linked to suspected market manipulation of China Ding Yi Feng shares
1.     SFC seeks disqualification orders against former directors of Luxey International (Holdings) Limited

On 7 March 2019, the SFC commenced legal proceedings in the Court of First Instance to seek court orders to disqualify the former chairman and executive director of Luxey International (Holdings) Limited, Mr Joseph Lau Chi Yuen, and the company’s former chief executive officer and executive director, Mr Chung Man Wai.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR18

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2.      SFC fines UBS HK$375 million and suspends its licence for one year for sponsor failures

On 14 March 2019, the SFC reprimanded and fined UBS AG and UBS Securities Hong Kong Limited a sum of HK$375 million for failing to discharge their obligations as one of the joint sponsors of three listing applications, namely, China Forestry Holdings Company Limited, Tianhe Chemicals Group Limited, and another listing application.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR19

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR19&appendix=0

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3.     SFC reprimands and fines Standard Chartered Securities HK$59.7 million for sponsor failures

On 14 March 2019, the SFC reprimanded and fined Standard Chartered Securities (Hong Kong) Limited HK$59.7 million for failing to discharge its obligations as one of the joint sponsors in relation to the listing application of China Forestry Holdings Company Limited in 2009.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR20

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR20&appendix=0

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4.      SFC reprimands and fines Morgan Stanley Asia Limited HK$224 million for sponsor failures

On 14 March 2019, the SFC reprimanded and fined Morgan Stanley Asia Limited HK$224 million for failing to discharge its obligations as one of the joint sponsors in relation to the listing application of Tianhe Chemicals Group Limited in 2014.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR21

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR21&appendix=0

5.      SFC reprimands and fines Merrill Lynch Far East Limited HK$128 million for sponsor failures

On 14 March 2019, the SFC reprimanded and fined Merrill Lynch Far East Limited HK$128 million for failing to discharge its obligations as one of the joint sponsors in relation to the listing application of Tianhe Chemicals Group Limited in 2014.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR22

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/openAppendix?refNo=19PR22&appendix=0

6.      SFC reprimands and fines BOCI Securities Limited HK$10 million for regulatory breaches in selling investment products

On 18 March 2019, the SFC reprimanded and fined BOCI Securities Limited HK$10 million over BSL’s internal system and control failures in its investment product selling practices.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=19PR17

For the Statement of Disciplinary Action, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/openAppendix?refNo=19PR17&appendix=0

7.      SFC issues restriction notices to nine brokers to freeze client accounts linked to suspected market manipulation of China Ding Yi Feng shares

On 20 March 2019, the SFC issued restriction notices to nine brokers, prohibiting them from dealing with or processing certain assets held in their clients’ accounts which are related to suspected market manipulation in the shares of China Ding Yi Feng Holdings Limited between 2018 and early 2019.

For more details, please refer to:

https://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/enforcement-news/doc?refNo=19PR23

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

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