The Securities and Futures Commission (SFC) recently published its quarterly report. The authority highlighted key developments between July and September 2021.
In an effort to combat misconduct, the SFC launched several joint operations with the Police Force of Hong Kong and ICAC. Additionally, the commission imposed a fine of $11.95 million on the two licensed corporations and five individuals during the quarter.
In terms of new listing applications, the SFC vetted a total of 78 requests including 15 from pre-profit biotech companies. Further, between July and September 2021, the authority made 2,733 requests for trading and account records triggered by turnover movements.
The SFC registered 12 new open-ended fund companies in the recent quarter. Additionally, 31 unit trusts and mutual funds were authorized by the commission during the mentioned period. This number includes 20 Hong Kong-domiciled funds.
“Other highlights of the quarter included the release of consultation conclusions on an investor identification regime and an over-the-counter securities transactions reporting regime for the Hong Kong securities market. The SFC also concluded a consultation on proposed amendments to the SFC’s anti-money laundering and counter-financing of terrorism guidelines to align them with the Financial Action Task Force’s standards and provide additional guidance for the implementation of risk-based measures,” the SFC highlighted.
Financial Misconduct
Since the start of 2021, the SFC has increased its efforts to counter financial misconduct involving listed companies. Efforts included strict actions and the imposition of fines on the firms. In October 2021, the SFC imposed a $5.5 million fine on Ample Capital Limited and suspended the company’s responsible officer for IPO sponsor failures.
“The SFC conducted separate joint operations with the Hong Kong Police Force and the Independent Commission Against Corruption (ICAC) to combat misconduct involving listed companies. The Police arrested two people for suspected conspiracy to defraud, theft and money laundering, and the ICAC arrested six people for suspected corruption offences,” the commission added.
