SFC fines CN Capital Management Limited over regulatory violations
The Securities and Futures Commission (SFC) of Hong Kong has reported about the fining of CN Capital Management Limited $1.2 million for not being able to maintain the efficient compliance function along with the internal controls of employee account dealing.
CN Capital Management Ltd. is a company that specializes in capital operation and management.
Also the representatives and responsible officers of the CN Capital George Chan Yee Lee and Stephen Ng Wing Leung were reprehended and fined $100.000 each for not keeping up with the requirements for employee account dealing under the Fund Manager Code of Conduct. This Code sets out the management requirements for the SFC registered or licensed representatives who work with or manage the collective investment businesses. The mentioned responsible officers violated the main principle, that those who are engaged in investment management business must give the priority to their clients and avoid conflicts of interests when making the financial operations.
According to the conducted and revealed SFC’s investigation none of the CN Capital employees has revealed their personal investment funds to the company in a written form. Also around 3188 personal trades were conducted by Mr. Chan and Mr. Ng without any written approval from the CN Capital designated officer.
The SFC took into consideration the following facts, when deciding the fines and penalties: both responsible officers of CN Capital the regulatory violations, they helped SFC to resolve this issue and the personal trades of Mr. Chan and Mr. Ng didn’t influence any client. They also have no disciplinary issues with the SFC.