Hong Kong’s SFC makes tackling corporate fraud its top priority
Hong Kong’s Securities and Futures Commission (SFC) has made fighting against corporate fraud its 2018 top enforcement priority, the regulator said today.
Corporate fraud is at the top of the list detailed in a report published on Monday. Other key priorities are insider dealing and market manipulation, intermediary and sponsor misconduct and money laundering internal control failures.
The report also outlines the enforcement implications of the Manager-In-Charge regime which helps the SFC identify responsible individuals, and the importance of the SFC’s enforcement cooperation with the China Securities Regulatory Commission for the development of Hong Kong’s financial markets. The SFC’s recent review of the marketing and sale of financial products is also discussed.
“Corporate fraud remains our top enforcement priority and we are particularly concerned about false or misleading financial statements, initial public offering fraud and other sponsor failures,” said Mr Thomas Atkinson, the SFC’s Executive Director of Enforcement. “The SFC will make every effort to combat fraud and misconduct and hold individuals accountable.”
In addition, the new issue summarises the Guidance Note on Cooperation with the SFC published in December 2017 and highlights the significance of four recent enforcement actions.
The Enforcement Reporter, available on the SFC website, is part of the SFC’s initiatives to enhance the transparency of its work and provide the market with regular updates on enforcement trends and priorities.