White Collar | SFC enforcement actions jump 55 per cent in 2016

The Securities and Futures Commission has stepped up enforcement action against individual bankers and directors, with data showing a 55 per cent rise in 2016.

The securities regulator imposed fines or other penalties on 85 senior executives or brokers, fund managers, and financial advisers or listed companies, compared to 55 actions in 2015, according to a study by law firm Freshfields Bruckhaus Deringer based on public information.

Bucking the trend, actions against companies fell 24 per cent on year, with just 25 companies facing censure, compared to 33 in 2015.

Total fines assessed in 2016 amounted to HK$67.9 million (US$8.74 million), down 4.2 per cent from 2015.

This showed the SFC has shifted enforcement emphasis towards senior executives and their roles in listed companies as well as banks and brokers.

“This increased enforcement focus on individuals is consistent with what we’ve been hearing from the Hong Kong regulators. The regulators have been clear that unless the leadership of corporates and financial institutions steers with the right ‘tone from the top’, individual directors and executives may be held responsible for their involvement in problems that arise,” said Georgia Dawson, a disputes partner at Freshfields.