In our newsletter last month, we looked at Hong Kong’s Market Misconduct Tribunal’s (MMT) first concluded case in relation to late disclosure of inside information.
The MMT found that AcrossAsia Limited, its former chairman and its CEO had breached the disclosure requirement under the Securities and Futures Ordinance (SFO) after they admitted to having been late in disclosing inside information about a petition filed against the company in Indonesia and a related court summons. Part XIVA of the SFO requires listed companies to disclose inside information to the public as soon as reasonably practicable. Their officers must take reasonable steps to ensure this occurs. The MMT found that AcrossAsia’s disclosure on the inside information was about a week late. On 30 November 2016, the MMT published its report (available here).
The MMT imposed fines totalling $2 million on the company ($600,000), its former chairman ($800,000) and its CEO ($600,000), and required them to pay the costs of the MMT proceedings and the SFC’s investigation and legal costs. In determining the fines, the MMT took into consideration admissions by the company and the CEO of their misconduct. The MMT also ordered the former chairman and the CEO to complete an SFC approved training programme on compliance with the inside information disclosure requirements.
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