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From Christine Gaylican, Opalesque Asia :
Failure of internal controls or inadequate supervision implemented by company officers have resulted to a recent spate of enforcement cases slapped by the state-run regulator Hong Kong Securities and Futures Commission (HK-SFC) on company officers, said Deacons Financial Services, a Hong Kong-based financial information services provider.
Deacons said in a December-09 commentary (Source) received by Opalesque that cases of regulatory breach discovered by the HK-SFC, unless proven otherwise by a local court, should serve as a lesson and warning for other licensed companies in the Chinese island-city.
Factors to avoid
Deacons said that convicted responsible officers from different companies need not suffer humiliation if proper regulatory obligations were met.
Cases in which officers were given a nine-month license suspension or a lifetime industry-wide ban were due to any of these factors:
- Inadequate supervision of operations and compliance,
- Failure to put in place sufficient internal control systems and policies,
- Carrying on unlicensed activities,
- Front-running,
- Failure to detect suspicious instructions to match orders,
- Breach of Hong Kong’s listing rules.
According to Deacons, these factors could be avoided if adequate internal controls and supervision o...................... To view our full article Click here
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