SFC bans licensed representative for disclosing false information
This alert serves as a reminder to all licensees that providing false or misleading information to the SFC has strict repercussions. Failure to provide information (including other disciplinary actions) relating to any regulatory authorities can result in disciplinary action. This also serves as a prompt not to bring unauthorised materials whilst attending any securities qualification-related examinations.
- Former LR received a nine month ban (Aug 2014-May 2015) from re-entering the industry for providing false or misleading information to the SFC.
- Failed to disclose disciplinary action taken against him by the Financial Industry Regulatory Authority (FINRA) of the US in two annual returns (provided in 2009) which he provided to the SFC.
- Criminal offence to provide to a specified recipient any information which is false or misleading in any material fact under Section 384 of the Securities and Futures Ordinance (SFO). Maximum penalty being a fine of up to HK$1,000,000 and two years imprisonment.
- Under Section 180 of the SFO, the SFC can conduct inspections and make enquiries in relation to licensed corporations. It is an offence to provide falsified or misleading information.
- LR pleaded guilty to two counts of providing false and misleading information to the SFC.
- Additional damages of HK$8,000 plus SFC investigation costs.
- In 2008, FINRA, the US regulator of broker-dealers, fined the LR US $5,000 and suspended the LR from association with any FINRA member in any capacity for two years due to possession of unauthorised materials whilst attending a securities qualification-related examination held in Hong Kong.
- With regard to financial returns submitted to the SFC, Section 55 of the Financial Resources Rules (FRR), licensed corporations must notify the SFC in writing within one business day of becoming aware of any information contained in any previous returns submitted to the SFC that has become false or misleading in any material fact.