In this landmark case, the Hong Kong Court of First Instance was asked to inquire into non-compliance by a Hong Kong CPA firm, Ernst & Young, with notices issued by the Securities and Futures Commission (“SFC”). The CPA firm contended that it could not disclose such documents by reason of legal impediments under PRC laws, including those pertaining to State secrecy.
The court found in favour of the SFC and directed the CPA firm to comply with the notices on the basis that the documents sought were found to be in the CPA firm’s possession and there was no reasonable excuse not to comply with the notices. Importantly, the court concluded that the restrictions under PRC laws cited by the CPA firm in its defence, including the laws on State secrets, were inapplicable in this case.
Mark Johnson, William Hallatt and Emily Lam of our Financial Services Regulatory team consider the case and its implications in a detailed briefing here.
Key contacts
Simon Chapman KC
Managing Partner, Dispute Resolution and Global Co-Head – International Arbitration, Hong Kong
Kathryn Sanger
Partner, Head of China and Japan, Dispute Resolution, Co-Head of Private Capital, Asia, Hong Kong
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