SFC reprimands and fines CN Capital Management Limited and responsible officers $1.2 million over regulatory breaches

24 Apr 2018



The Securities and Futures Commission (SFC) has reprimanded CN Capital Management Limited (CN Capital) and fined it $1,000,000 for failing to maintain an effective compliance function and satisfactory internal controls concerning employee account dealing (Note 1).

The SFC has also reprimanded its responsible officers, Mr George Chan Yee Lee and Mr Stephen Ng Wing Leung and fined them $100,000 each for failing to comply with the employee account dealing requirements under the Fund Manager Code of Conduct, breaching the basic principle that persons engaged in fund management business, when transacting for themselves, must give their clients priority and avoid conflicts of interest (Note 2).

The SFC’s investigation revealed that, between January 2011 and October 2016:

In deciding the sanctions, the SFC took into account all the circumstances including:

End

Notes:

  1. CN Capital is licensed under the Securities and Futures Ordinance (SFO) to carry on Type 9 (asset management) regulated activity.
  2. Chan and Ng are licensed under the SFO to carry on Type 9 (asset management) regulated activity. They are the responsible officers of CN Capital.

A copy of the Statement of Disciplinary Action is available on the SFC website



Page last updated : 24 Apr 2018