•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

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