The Hong Kong Securities and Futures Commission‘s enforcement actions for the new financial year against firms have nearly tripled compared with the same time last year--setting a quarterly record. The SFC reported in its “First Quarterly Report for the Financial Year 2006-2007" that from April to June of this year, the SFC filed 38 enforcement actions against entities, up from 14 in the same period in 2005. “The record quarterly number of actions against entities is just the outcome of the SFC’s ongoing disciplinary actions,” said CK Chan, SFC spokesman. “But perhaps in part it may be attributable to the SFC’s policy.”
Chan noted that since March 2005, the SFC has aimed at being more active in settling cases at an early stage if an acceptable penalty, taking into account a suitable discount for early cooperation, can be achieved. Disciplinary inquiries in progress rose as well, to 122 from 108 for the respective periods, the report stated. It noted that successful prosecutions were up to 22 for the first quarter compared with 18 for the 2005 quarter. Cases under investigation rose slightly, up by three to 497. The full year number of actions against companies and persons for the 2005-06 year was 98, Chan added.
The number of requests from overseas regulators for the first quarter--at 82--was higher than in previous years, but compiled differently. “For the first time we also included the number of requests relating to licensing status and history,” Chan said. These accounted for 56 of the total requests. “Otherwise the figure has gone up slightly, because of generally better cooperation with other regulators,” Chan added.