On Oct. 12, HK SFC fined ARCM HKD 1.75mn for disclosure breaches.
- HK SFC reprimanded and fined Asia Research & Capital Management Limited (ARCM).
- Fined HKD 1.75mn for failures relating to its non-compliance with the EU’s short-selling reporting requirements and for not promptly notify HK SFC of breaches.
- HK SFC also banned former senior executive Mr. Billy Wong Yim Chi for two months.
- Follows UK FCA October 2020 fined ARCM £873k re short selling disclosures.
- ARCM failed to implement adequate systems/controls in its compliance framework to monitor and ensure its short position in Premier Oil was properly reported to UK FCA.
- As well as to ensure proper disclosure to public as required under the EU regulation.
- Failed to seek advice on reporting obligations before it established short position in Premier Oil even though ARCM investing in new jurisdiction/unfamiliar with EU market.
- Also failed to notify HK SFC immediately upon becoming aware that it had materially breached the EU regulation, and only did so after a delay of around two months.
- ARCM’s failures to comply with EU regulation were directly attributable to Mr. Wong.
- Specifically, his failure to discharge his duties as ARCM’s manager-in-charge for compliance and as a member of its senior management during the material time.