The Securities and Futures Commission has publicly reprimanded Seapower Securities after an inquiry into misconduct. The commission said Seapower had failed during the period, May 1995 to July 1996, to implement internal controls and procedures to detect possible short selling and to act as a deterrent to persons wishing to short sell. The regulatory body said that Seapower Securities had also failed to carry out specific and effective controls and procedures for monitoring in-house cross trades. In addition, Seapower had no adequate audit trail in place to detect and deter clients and staff trading malpractices, nor a written policy on client and staff trading. Seapower Securities also did not have sufficient resources to supervise diligently its employees and persons it appointed, the Securities and Futures Commission said. However, the commision said Seapower had introduced initiatives since mid-1996 designed to improve compliance. Separately, the SFC has suspended the registration of Lee Yuen-sang as a dealer's representative of Roctec Securities Co for three months with effect from today for his involvement in trading malpractices as well as short selling between last June and September.