SFC reprimands and fines Convoy Asset Management Limited $6.4 million for regulatory breaches over bond recommendation

19 May 2020



The Securities and Futures Commission (SFC) has reprimanded and fined Convoy Asset Management Limited (CAML) $6.4 million for control failures in solicitation and recommendation of bonds to clients (Note 1).

The SFC found that CAML referred clients to a third party platform between March 2015 and January 2017 to execute 30 transactions of bonds listed under Chapter 37 of the Main Board Listing Rules (Chapter 37 Bonds), some of which involved solicitation or recommendation made to clients (Note 2).

In recommending Chapter 37 Bonds to clients, CAML failed to:

In deciding the disciplinary sanctions, the SFC took into account that:

End

Notes:

  1. CAML is licensed to carry on Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance.
  2. Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.         

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



Page last updated : 19 May 2020