SFC Disciplinary Actions in May 2020

Julia CharltonPartner, Charltons

Hong Kong’s securities regulator, the Securities and Futures Commission (SFC), continued its focus on disciplining licensed intermediaries for breaches of the Code of Conduct for Persons Licensed by or Registered with the SFC (SFC Code of Conduct) and corporate misconduct by companies listed on the Hong Kong Stock Exchange (HKEx) during May 2020. Disciplinary actions during the month included:

  • the imposition of a HK$7 million fine on a licensed intermediary for internal control failures involved in its sale of collective investment schemes;
  • a court order requiring a listed company to reconstitute its audit committee and appoint independent auditors to review its internal controls in proceedings related to the company’s falsification of its financial results; and
  • the disqualification of former directors of a former listed company for misapplication of company funds.

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