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SFC commences legal proceedings against AMTD Global Markets Limited and its former executives for non-compliance in IPO-related investigations

Issue date: 2023-11-23 17:42:39

The Securities and Futures Commission (SFC) has commenced legal proceedings asking the Court of First Instance to inquire into the circumstances of non-compliance by AMTD Global Markets Limited (AMTD, currently known as orientiert XYZ Securities Limited) and its former executives with the SFC’s notices in initial public offerings (IPOs)-related investigations (Notes 1 & 2).

The SFC’s investigations related to suspected employment of fraudulent or deceptive schemes and/or disclosure of false or misleading information in the IPOs of certain listed companies where AMTD was involved as bookrunner, lead manager and underwriter.

The former executives of AMTD, amongst others, are: Lo Chi Hang, former responsible officer (RO); Philip Yau Wai Man, former director and manager-in-charge (MIC); and See Hiu Lun, former emergency contact person and complaints officer (Notes 3 to 5).

The SFC issued notices to AMTD seeking records relating to, amongst other things, its work in those IPOs.  However, AMTD did not fully comply with the notices.

The former executives of AMTD did not attend interviews as required after the SFC had issued them with interview notices.

If the Court is satisfied after an inquiry that AMTD and its former executives do not have any reasonable excuse for not complying with the SFC notices, it can order AMTD to produce the specified records and its former executives to attend interviews, and it can punish them as if they had been guilty of contempt of court.

End

Notes:

1. Under section 183 of the Securities and Futures Ordinance (SFO), the SFC can require a person under investigation or a person who is believed to have in his possession any record or document relevant to an SFC investigation to (amongst other things) produce the specified records, and attend an interview.  If a person fails to comply with such a requirement without a reasonable excuse, the SFC can bring proceedings under section 185 of the SFO which empowers the Court of First Instance to inquire into the circumstances of non-compliance.  The Court can order the person to comply with the requirement and can punish them as if they had been guilty of contempt of court if it is satisfied that the person does not have any reasonable excuse for not complying.
2. AMTD is licensed under the SFO to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 4 (advising on securities), Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activities.
3. Lo was AMTD’s RO in respect of its Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) regulated activities from 7 April 2016 to 6 April 2023, and AMTD’s RO in respect of its Type 2 (dealing in futures contracts) regulated activity from 1 March 2019 to 6 April 2023. 
4. Yau was AMTD’s MIC for operational control and review, risk management, and finance and accounting from 17 July 2017 to 6 February 2023, AMTD’s MIC for information technology from 19 March 2018 to 6 February 2023 and AMTD’s MIC for anti-money laundering and counter-terrorist financing from 4 March 2019 to 6 February 2023.  Yau was AMTD’s director from 19 December 2016 to 31 December 2019.
5. See was AMTD’s emergency contact person and AMTD’s complaints officer from 16 April 2021 to 9 February 2023.  See was AMTD’s licensed representative in respect of its Type 1 (dealing in securities) regulated activity from 5 April 2016 to 3 July 2017, and in respect of its Type 4 (advising on securities) regulated activity from 23 September 2016 to 3 July 2017.  See is currently not licensed by the SFC.

News captured as of:2023-11-23 17:42:39

Source: SFC