Update on the SFC Code of Conduct - whistleblowing HK style
Amendments to the SFC Code of Conduct (Code) were announced earlier this year and the majority came into effect over the weekend, on 1 December 2012. Here we take a closer look at what is the most important new requirement, which imposes an obligation on licenced entities to report suspected market misconduct by clients.
The major change to the Code is a new paragraph in the reporting section of the Code (section 12.5) which requires licenced persons or entities to immediately report to the SFC:
“Any material breach, infringement or non-compliance of market misconduct provisions set out in Part XIII or Part XIV of the Securities and Futures Ordinance that it reasonably suspects may have been committed by its client, giving particulars of the suspected breach, infringement or non-compliance and relevant information and documents.”
This means that licensed persons/entities are now required to report suspected breached by their clients of the market misconduct provisions in the Securities and Futures Ordinance (“SFO”). This is a significant shift from the other requirements in section 12 of the Code, which focus on a licenced entities own compliance. Going forward, licensed persons/entities are now required to monitor their clients’ compliance with certain parts of the SFO…
If you are registered and logged in to the site, click on the link below to read the rest of the King & Wood Mallesons briefing. If not, please register or sign in with your details below.
News from King & Wood Mallesons
News from The Lawyer
Briefings from King & Wood Mallesons
Principals and contractors need to be aware that in not registering security interests under the PPSA 2009, they may risk serious consequences.
The New Companies Ordinance (NCO) will come into effect on 3 March 2014. It includes changes that affect the way documents may be executed.
Analysis from The Lawyer
Shanghai’s ground-breaking Pilot Free Trade Zone could mark the beginning of the long-awaited liberalisation of China’s legal services sector.
Hong Kong IPO activity is hotting up again, but UK legal stalwarts are looking over their shoulders as US rivals make up ground fast