The Securities and Futures Commission (SFC) has reprimanded and fined SEAVI Advent Ocean Private Equity Limited (SAOPEL) $1 million for breach of the Code of Conduct (Notes 1 & 2).
The disciplinary action follows an SFC investigation which found that SAOPEL had allowed its director and an investment manager, both of whom were not licensed by the SFC, to perform regulated functions for its business in regulated activities between March 2013 and April 2014. They introduced clients to invest in the fund managed by SAOPEL, answered clients’ queries and arranged for the execution of the subscription agreements for the fund (Notes 3 & 4).
In determining the sanction, the SFC took into account all relevant circumstances, including that SAOPEL:
- had failed to ensure that the persons it employed/appointed to conduct its licensed business were fit and proper;
- cooperated with the SFC in resolving its concerns; and
- has an otherwise clean disciplinary record.
Notes:
- SAOPEL has been licensed under the Securities and Futures Ordinance (SFO) to carry on Type 9 (asset management) regulated activity since 9 July 2008, with the conditions that it can only provide services to professional investors and cannot hold client assets.
- Code of Conduct for Persons Licensed by or Registered with the SFC.
- Under section 114 of the SFO, subject to the stipulated exemptions in section 114(4) of the SFO, it is an offence for a person, without reasonable excuse, to perform any regulated function in relation to a regulated activity carried on as a business.
- Paragraphs 12.1 and 4.1 of the Code of Conduct provide that a licensed corporation should comply with the relevant law and regulations, and ensure that any person it employs or appoints to conduct business is fit and proper and otherwise qualified to act in the capacity so employed or appointed.
A copy of the Statement of Disciplinary Action is available on the SFC website
