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Hong Kong – Enforcement News.

16 May, 2013

Licence applicant banned for giving false information to SFC

 

In February 2013, the SFC banned a former licensed representative of SinoPac Asset Management Asia Limited from re-entering the financial industry for nine months as he failed to disclose disciplinary action taken against him by the Securities and Futures Bureau of Taiwan in his license application to the SFC.


This disciplinary action serves as a reminder to license applicants on the importance of reading and completing application forms carefully. It is a criminal offence to provide false or misleading information to the SFC, and the SFC will verify information provided on each application through its 
connections with other regulatory bodies within and outside Hong Kong.


The principal to which the license applicant will be accredited must also review and verify the accuracy of information provided in the application. The principal should be convinced that the license applicant is fit and proper to carry on the proposed regulated activity(ies) before endorsing the application.


SFC bans former managing director of Morgan Stanley for life for insider dealingIn March 2013, the SFC banned Mr. Du Jun (“Mr. Du”), former managing director of Morgan Stanley Asia Limited (“Morgan Stanley”), from re-entering the financial industry for life.The disciplinary action followed the completion of criminal proceedings commenced by the SFC in September 2012, in which the Court of Appeal upheld the conviction of Mr. Du for insider dealing in shares of CITIC Resources Holdings Ltd. worth HK$86 million. 


Unsurprisingly, the SFC concluded that Mr. Du is not a fit and proper person to be licensed. In deciding the sanction, the SFC took into account considerations including his breach of trust and confidence from his clients and employer, his criminal convictions, and that insider dealing is very serious misconduct which damages market integrity.

 

 

For further information, please contact:

 

John Moore, Partner, Morrison Foerster
johnmoore@mofo.com
 

Stephen Birkett, Morrison Foerster

sbirkett@mofo.com

 

 

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