MyComplianceOffice Blog

The financial services industry brings substantial responsibilities for those working within it, often far beyond other professions. After all, dealing with money brings significant consequences when managed incorrectly. The outcomes of improper financial management, unethical behaviour, and conflicts of interest can impact not only the lives of clients but also financial advisers who fail to meet the standards of regulators or their firms.

Insider trading cases have seen a variety of sentences over the years. However, some jurisdictions have recently increased their focus on these cases, seeing more convictions and higher sentences. Blackout periods are a critical component of any public company’s trading policy to minimise the risk of insider trading occurring.

Hong Kong’s Securities and Futures Commission (SFC) has published its consultation conclusions on proposed amendments to enforcement-related provisions of the Securities and Futures Ordinance (SFO) (Note 1).

Hong Kong has become one of the most corruption-free nations in the world. The Transparency International 2022 Corruption Perceptions Index (CPI), the most widely used global corruption ranking system, lists Hong Kong as the 12th most ‘clean’ nation out of 180. The system measures how corrupt a country’s public sector is perceived to be, according to experts and businesspeople.

Cases of insider trading and securities compliance failures have made headlines in recent years. And for a good reason. Financial markets rely heavily on high liquidity, making it easy to trade securities without affecting price. However, when markets are manipulated, liquidity is affected, transaction costs can increase, and investor returns are reduced.