This issue of Sidley’s Hong Kong Regulatory Newsletter discusses important regulatory and enforcement developments affecting entities that conduct regulated activities or trade securities in Hong Kong.
In this issue:
• Top appellate court finds “no profit motive” defense insufficient to refute allegations of insider dealing
• Top appellate court confirms wider purview of SFC’s disciplinary jurisdiction
• Top appellate court affirms regulator’s general antifraud powers to tackle insider-dealing cases involving offshore securities
The newsletter examines a spate of skirmishes with the regulator culminating in a trio of landmark decisions by Hong Kong’s top appellate court in October. The judicial panels in each case rebuffed attempts to challenge the SFC’s disciplinary or enforcement powers to tackle various forms of misconduct under the legislation. Many of the issues canvassed by the parties had been largely untested. However, the scope for others intent on exploiting perceived weaknesses in the territory’s securities laws appears (to some extent) firmly closed.
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