• HK SFC has reprimanded Optimas Capital and fined it HKD1.05mn over failures.
• It did not ensure short position reports (SPRs) for a collective investment scheme (CIS) under its management were accurate and compliant with the requirements.

Investigation

• An SFC investigation following a self-report by Optimas found that a total of 350 reportable short positions held by the CIS had been omitted in 56 SPRs 2017-18.
• The errors found in the SPRs prepared by Optimas occurred as a result of a programming mistake in a script developed by its operations manager at the time.
• The script in question was created to automate the process of identifying short positions held by the CIS in order to filter out those that were reportable.
• However, Optimas failed to detect the programming mistake promptly due to inadequate supervision and review over the work of its then operations manager.
• The SFC considers that Optimas had failed to act competently to ensure the SPRs it prepared would be accurate/compliant with applicable requirements under SPR rules.
• In deciding the sanction, the SFC took into account all relevant circumstances, including Optimas’ prompt remedial actions and cooperation with the SFC.