Wider scope for the Securities and Futures Commission (SFC) enforcement action confirmed
15 July 2013
This ruling also leaves foreign market participants more vulnerable to enforcement action by the SFC. A foreign participant, without a presence in Hong Kong, accused of market misconduct, would not be vulnerable to criminal proceedings and, although MMT proceedings could be brought, these proceedings are regarded as relatively slow and cumbersome. The confirmation that s213 is available means that the SFC has a further tool that may be applied against foreign participants that operate in a far more streamlined fashion.
Contributed by Kevin Kee
The SFC is likely to rely increasingly on s213, as an application under that section is likely to result in final orders more quickly than if the matter needed first to be determined by the MMT or the criminal courts.