SFC’s new guidance note redefines cooperation in disciplinary, civil court and market misconduct tribunal proceedings

Abstract

PurposeThe purpose of this paper is to discuss the new “Guidance Note on Cooperation with the SFC” released by the Hong Kong Securities and Futures Commission (“SFC”) on 12 December 2017, which updates the SFC’s previous guidance note issued in 2006.Design/methodology/approachThis paper explains key features to the guidance note, the SFC’s current approach in investigations and enforcement and the impact on regulated parties and senior management. In particular, the authors discuss what cooperation means in disciplinary, civil court and market misconduct tribunal proceedings.FindingsThe new guidance note confirms that the SFC will play an increasingly active role in investigations and that taking proactive steps at an early stage, including involving senior management, will have a positive impact on the outcome of the investigation.Originality/valueCommentary and practical guidance from experienced securities enforcement and financial services regulatory enforcement lawyers.