Hong Kong: Insider Dealing in Overseas Listed Shares caught under s300 SFO
Insider Dealing in Securities Listed Offshore: High Court Interprets Section 300 SFO in Landmark Case
In a landmark decision, the Court of First Instance has confirmed that insiders, as defined in the Securities & Futures Ordinance (SFO), Cap. 571, may be liable under Section 300 of the SFO for dealings involving non-Hong Kong listed securities.
The case Securities and Futures Commission v Young Bik Fung [2016] HKEC 107 English Judgment was decided on 15 January 2016. Two lawyers were found guilty of illegally profiting from inside knowledge.
The decision paves the way for the SFC to use section 300 of the SFO to pursue insider dealing cases involving securities listed on foreign markets. Proceedings for insider dealing under Section 270 or 291 can only be brought in respect of insider dealing in shares listed on the Hong Kong Stock Exchange. Read more