Market Misconduct Regulations in Hong Kong
Insight into the Securities and Futures Ordinance (Cap 571) (SFO) and its ‘dual’ approach to breaches, which can see both civil cases and criminal charges being brought.
read moreHong Kong combats financial crime through various statutes – from the general criminal statute sanctioning traditional white collar crimes of theft and fraud to the complex and detailed requirements placed on financial institutions to curb misconduct in the securities market as well as money laundering and terrorist financing. This overview will consider the legislation, the powers and duties of enforcement agencies and the steps that institutions and corporations must take to comply, as well as to protect themselves from cyber threats, data breaches and handling investigations.
Insight into the Securities and Futures Ordinance (Cap 571) (SFO) and its ‘dual’ approach to breaches, which can see both civil cases and criminal charges being brought.
read moreScrutiny of issues relating to manipulation of the securities market is provided and offences which traditionally fall under this umbrella.
read moreIllicit trades are considered in detail, documenting the history of the situation in Hong Kong and the current regime. Relevant legislation is considered, along with possible sanctions and penalties.
read moreAs with the provisions governing other forms of market misconduct, insider dealing is categorised into the civil regime and the criminal regime.
read moreInsider dealing is defined under the SFO to arise under the three circumstances and under each circumstance, inside information may originate from two kinds of sources: someone connected with a corporation or someone involved with a proposed take-over offer for a corporation.
read moreUnder sections 271 and 292 of the SFO, a person or corporation may avail himself of a defence if he falls within one of the categories set out in this article.
read moreOn 11 March 2021, the Market Misconduct Tribunal fined Magic Holdings International Limited and five of its directors a total of $4 million after they were found to be culpable of late disclosure of inside information on L’Oréal S.A.’s proposed acquisition of Magic in 2013.
read moreThe Securities and Futures Commission reprimanded and fined Ewarton Securities Limited for internal control failings and breaches of the SFC’s Code of Conduct.
read moreBoiler room fraudsters ordered to compensate investors after finding that none of the investments in securities / futures products agreed were ever executed.
read moreCourt of Appeal grants the Securities and Futures Commission $622 million compensation orders against former directors of EganaGoldpfeil (Holdings) Ltd.
read moreThe Securities and Futures Commission warns unregulated virtual asset platforms
read moreThe Securities and Futures Commission (“SFC”) issued a circular to licensed corporations (“LC”) on 28 June 2021 warning against unsatisfactory practices in the operation of bank accounts of LCs (the “Circular”).
read moreMetLife (now FWD Life) & Metropolitan Life Insurance (now FWD Life Assurance) fined HK$7 million. It is clear that the IA takes these failures very seriously.
read moreReaders are reminded to be alert if approached with securities & futures investments or dealing with anyone claiming they are licensed / registered in Hong Kong
read moreWhen you visit our website, it may store information through your browser from specific services, usually in the form of cookies. Here you can change your Privacy preferences. It is worth noting that blocking some types of cookies may impact your experience on our website and the services we are able to offer.