On 30 July 2015, the Hong Kong Securities and Futures Commission (SFC) announced that it had reprimanded and fined Nomura International (Hong Kong) Limited HK$4.5 million for failing to report significant misconduct by a former trader in a timely manner.
This case underlines and reinforces the importance of the self-reporting obligations contained under Paragraph 12.5 of the SFC’s Code of Conduct, which requires intermediaries to report misconduct and suspected misconduct to the SFC immediately upon discovery, not when they have concluded internal investigation or obtained legal advice on the matter. It also reflects a broader global trend on the part of regulators in taking tough action in respect of firms who fail to be open and cooperative with their regulators.
Details of the disciplinary action can be found in the SFC’s press release of 30 July 2015 and statement of disciplinary action.
To read more about the case from our regulatory team in Hong Kong, click here.
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