SFC targets mis-selling
30 Oct 2008
Given considerable public interest, the Securities and Futures Commission (SFC) earlier this month took the rare step of announcing the commencement of investigations into the conduct of distributors of Lehman Brothers Minibonds.
The latest edition of the Enforcement Reporter summarises the two types of mis-selling that the SFC is investigating. It also notes that the completeness of information supplied by the issuers is being examined. The report also highlights various issues regarding mis-selling that Mr Mark Steward, the SFC’s Executive Director of Enforcement, explained in depth in a recent speech.
Separately, the report gives an account of the commencement of proceedings in the High Court with three cases seeking orders against nine current and former company directors for alleged misconduct.
In the proceedings, the SFC will ask the court to disqualify the directors and/or to make orders that the directors pay compensation to the companies for the losses caused by their alleged breaches of duty. This will be the first time the SFC asks the court to make compensation orders.
An account of further progress in combating insider dealing can also be found in the publication. The commencement of the fourth and fifth criminal prosecutions for insider dealing has taken place since the last issue was published in August.
The Enforcement Reporter is a newsletter which highlights key enforcement outcomes and issues. It is available on the SFC website under “Speeches, Publications & Consultations” – “Publications”.
The public are invited to subscribe to the Enforcement Reporter by registering for the Update Alert service on the SFC website. They will then be able to receive the newsletter via email.
The public are welcome to provide feedback to improve the Enforcement Reporter. Comments can be sent to firstname.lastname@example.org.
Page last updated : 1 Aug 2012