Hong Kong Regulator Fines MIS Services $386,000 Over Regulatory Breaches

Josh O'Neill

5 January 2017

Hong Kong's , HK$3 million ($386,816) over compliance failings relating to the fund manager code of conduct.

An investigation conducted by the financial watchdog found that SCIS failed to ensure there were at least two “key personnel” who met the minimum investment experience of five years in managing retirement funds or public funds as required by one of the SFC's codes of conduct for a period of more than nine years.

From September 2013 through to July 2015, SCIS did not have any key personnel who met the minimum investment experience requirement. For a period of more than seven years spanning between October 2000 and September 2013, SCIS had only one key personnel who conformed with the regulatory requirements. As a result, SCIS failed to implement adequate policies and procedures for the operation and monitoring of the investment experience of its key personnel, the SFC said.

Additionally, the group failed to communicate to its staff members of their designation as key personnel and advise them of the necessary investment experience required for the role.

Towards the end of last year, the SFC introduced heightened regulatory measures to increase the accountability of the senior management of all licensed institutions.