Proposed Amendments to Enforcement-related Provisions of the Securities and Futures Ordinance

CPT/CE Eligibility (A Recognized CPT Provider)

CPT hour(s) (Ethics / Compliance)	1
PL (CE) hour(s)	1
RBV CPD hour(s)	1

EVENT DETAILS

(CODE: 220715LU-CEX)

On 10 June 2022, the SFC proposed amendments to certain enforcement-related provisions of the Securities and Futures Ordinance (“SFO”). This session will cover the three key proposed changes to the SFO’s enforcement related provisions, focusing on the SFC’s planned amendments to section 213 of the SFO. If implemented, the changes sought by the SFC to this provision would allow the SFC to seek orders compelling licensed corporations / registered institutions that are found guilty of engaging in misconduct under the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (“Code of Conduct”) to:

• provide investor compensation in relation to that misconduct; and
• pay potentially uncapped damages regarding that misconduct.

Both of these changes would significantly increase the financial consequences of SFC enforcement actions for Hong Kong licensed corporations and registered institutions. As such, these changes could well be a game changer for the Hong Kong enforcement landscape.

The SFC has also proposed amendments to:

• the PI exemption under s 103(3)(k) on the issue of advertisements of investment products; and
• the territorial scope of insider dealing provisions, through which the SFC seeks to expand the scope of the insider dealing provisions under the SFO to cover insider dealing outside of Hong Kong in relation to Hong Kong  listed securities, as well as insider dealing in Hong Kong in relation to overseas listed securities.

“If you would like to know more about the SFC’s consultation paper on proposed amendments to enforcement-related provisions of the Securities and Futures Ordinance[1] [2] (“SFO”), please click here.”

About the Speakers

Mr. William Hallatt
Partner
Gibson, Dunn & Crutcher

William Hallatt is a partner in the Hong Kong office of Gibson, Dunn & Crutcher.  He is co-chair of the firm’s Global Financial Regulatory group and head of the Asia-Pacific Financial Regulatory practice.  His full-service financial services regulatory practice provides comprehensive contentious and advisory support as a trusted advisor to the world’s leading financial institutions.  His clients include global investment banks, wholesale and retail banks, hedge funds, private wealth managers, investment managers, insurers, cryptocurrency exchanges and major fintech firms. 

Mr. Hallatt has extensive experience in handling both internal and external regulatory investigations, in particular high-stakes enforcement matters brought by key financial services regulators, including the Hong Kong Securities & Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA), covering issues such as IPO sponsor conduct, anti-money laundering and terrorist financing compliance, systems and controls failures, and cybersecurity breaches. 

Mr. Hallatt routinely advises on new regulatory developments and compliance advisory matters, as well as the extraterritorial impact of third-country regulation, such as MiFID II and the EU Benchmark Regulation.  He is a leading expert on culture, conduct and governance, having worked with regulatory bodies including the Financial Stability Board (FSB) on recent reforms in this area. He has also led the industry response on a number of the most significant regulatory change issues in recent years, working closely with senior figures from major regulators, including the SFC, HKMA, Hong Kong Insurance Authority (IA) and the Monetary Authority of Singapore (MAS), together with leading industry associations, including the Asia Securities Industry & Financial Markets Association (ASIFMA) and the Alternative Investment Management Association (AIMA).

Mr. Hallatt also has particular expertise in relation to the regulation of cryptocurrencies and other digital assets, and has advised the world’s leading cryptocurrency exchanges as well as regulated financial institutions on a range of key strategic matters in this space. This includes advising cryptocurrency exchanges on regulatory restructurings, high profile regulatory investigations and the handling of licence applications in multiple jurisdictions. Mr. Hallatt also frequently works with Gibson Dunn’s leading Funds Management team to advise investors on their investments into cryptocurrency-focused funds and the regulatory issues associated with such investments.

Mr. Hallatt has regularly been listed as a leading lawyer in Chambers Asia Pacific for both contentious and non-contentious regulatory work and is now also listed as a leading lawyer by the inaugural Chambers Greater China Region released in 2022, in which a client was quoted saying “He’s wonderful.”  In the 2021 edition a client noted: “William has his ear to the ground when it comes to regulatory developments across Asia.  He is the first person I speak to concerning regulatory developments and his advice is always practical and measured. His experience in regulatory investigations allows him to think several steps ahead as to where an investigation is heading.”  Mr. Hallatt’s practice is also recognized by Legal 500 Asia Pacific, which highlights the practice as being “particularly adept at engaging with regulators such as the Hong Kong Securities & Futures Commission as well as the Hong Kong Monetary Authority.”

Before joining Gibson Dunn, Mr. Hallatt served as a partner at Herbert Smith Freehills, where he was head of the firm’s Financial Services Regulatory practice in Asia.  He began his legal career at Linklaters. 

Mr. Hallatt received his law degree from the University of Leeds in 2001.  He is admitted as a Solicitor of the Senior Courts of England and Wales and as a Solicitor of the High Court of Hong Kong.

Ms. Emily Rumble
Associate
Gibson, Dunn & Crutcher

Ms. Rumble advises international financial institutions on a wide range of contentious and non-contentious regulatory issues. Ms. Rumble has advised clients on a range of significant regulatory investigations, including in relation to anti-money laundering and counter-terrorism financing and sponsor misconduct, in both Hong Kong and Australia. Ms. Rumble also regularly advises clients on complex non-contentious regulatory matters, with a particular focus on culture, conduct and governance matters, including the implementation of senior management accountability regimes across the Asia-Pacific region. Ms. Rumble also advises clients on licensing and misconduct matters more broadly.

Before joining Gibson Dunn, Ms. Rumble trained and practiced at the Sydney and Hong Kong offices of an international law firm, and was an associate to Justice Annabelle Bennett of the Federal Court of Australia.

Ms. Rumble has First Class Honours degrees in Law and History from the University of New South Wales, and a Bachelor of Civil Law (Distinction) from the University of Oxford, where she specialized in financial and corporate regulation. She is admitted to practice in New South Wales, Australia, and in Hong Kong.

Rating General- Material presented will be basic and of interest to a general audience having no background in the area.

CFA Societies Global Passport Program

CFA Society Hong Kong has participated in the CFA Societies Global Passport Program which allows CFA society members to enjoy local society member rate at selected events like this luncheon.  Members of non-CFA Society Hong Kong CFA Institute societies qualify to attend this event at CFA Society Hong Kong member rates.  Please contact CFA Society Hong Kong at event@cfahk.org to register

Other Details:

• This Webinar is a complimentary event for all members.
• Upon registration on the Zoom platform, each registrant will be given a unique link for each session, please do not share the link with others.
• Members will be entitled to receive CPT Attendance Letter at NO extra costs after attending the FULL webinar. Please see below for further details.
• To qualify for CPT/CE hours, all participants must attend the full webinar. After the webinar, Society staff will verify participants’ check-in and check-out time from the registration system for the purpose of issuing CPT Attendance Letters. No pro-rata credit hours will be awarded.
• CFA Societies Global Passport Program Eligible.
• The event will be conducted in English.
• The webinar link and email confirmation will be sent to the registrant upon successful online registration. 
• A webinar reminder will be sent out 1 day before the event. If you have not received the email confirmation and reminder, it is the delegate’s responsibility to contact CFA Society Hong Kong to confirm their place.
• The webinar will be conducted on Zoom.
• Please log in to the webinar link 10 mins in advance of the session start time to allow some time to solve the technical issues (if any) and the webinar will start promptly at 12:30 PM.
• For the attendance-taking purposes, participants’ names and company names (if any) may be given to the speaker of this event.
• CFA Society Hong Kong will closely monitor and assess the ongoing situation of COVID-19 in the community. Should there be any changes to the event dates and other arrangements, we will notify participants via SMS and/or email.  Notices will also be posted on Society’s website.  Please stay alert to our notifications.
• The event organizers reserve the right to change the format, date or speakers of the event due to unforeseen circumstances without prior notice.
• In case of dispute, the decision of CFA Society Hong Kong is final, and no further correspondences will be entertained. 
• *For Guest/ non-member/ Candidate, $150 is required for the CPT Attendance Letter, please click the box below for the CPT attendance letter. You will be directed to Paypal to complete the order. Please submit your application before the registration deadline (13 Jul).
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