On 23 December 2020, HK SFC fined Fulbright Securities find $3.6 million.
- HK SFC fined Fulbright Securities $3.6 mn for internal control failures relating to short selling and for failing to report related short selling incidents to SFC in timely manner.
- From October 2015 to March 2016, there were at least 93 instances of short sales executed by Fulbright which resulted from its failure to put in place effective internal controls.
- Control procedures should have been in place to detect, prevent illegal short selling.
- Fulbright failed to report these incidents to SFC immediately upon discovering them.
- In deciding the disciplinary sanction, all relevant circumstances taken into account.
- Included that adequate, effective internal control systems fundamental to fitness and properness of licensed corporation and short selling failures lasted for at least 6 months.
- However Fulbright cooperated in resolving SFC’s concerns and accepted the findings.
- Also took into account Fulbright had taken measures to rectify its internal control deficiencies in relation to detection and prevention of short selling after the incidents.
- Finally, it was noted that Fulbright had an otherwise clean disciplinary record.