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In a landmark case, the Hong Kong Court of First Instance was asked to inquire into non-compliance by a Hong Kong CPA firm with notices issued by the Securities and Futures Commission (“SFC”).  Importantly the court concluded that restrictions under PRC laws cited by the firm in its defence, including the laws on State secrets, were inapplicable in this case.  

The firm  had asserted that it could not disclose such documents due to restrictions under PRC laws, including those pertaining to State secrecy.   The Hong Kong Court found in favour of the SFC and directed the firm to comply with the notices on the basis that the documents sought were found to be in the firm’s possession and there was no reasonable excuse for the firm to not comply with them.

Our HK team's briefing considers the case and its implications in more detail.

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