Regulatory Alerts2016-09-30
Added · Updated
Guideline on Exercising Disciplinary Power to Order a Pecuniary Penalty under Section 203C(1) of the Securities and Futures Ordinance
The Hong Kong Monetary Authority issued this guideline to specify how it exercises its power to order pecuniary penalties against authorized financial institutions and approved money brokers for contravening OTC derivatives obligations. The Monetary Authority must consider mandatory factors such as intent, market integrity, and financial loss, while also evaluating relevant circumstances including the severity of the breach, post-contravention conduct, and compliance history. The penalty aims to deter future violations without causing financial jeopardy to the regulated entity, with the Monetary Authority generally publicizing its decisions to ensure consistency and transparency.
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