Hong Kong's Securities And Futures Commission: Court Of Appeal Dismissed Moody’s Leave Application To Appeal To The Court Of Final Appeal

The Court of Appeal today dismissed Moody’s Investors Service Hong Kong Limited’s (Moody’s) application for leave to appeal to the Court of Final Appeal in the matter of the Securities and Futures Commission’s (SFC) disciplinary action in relation to a special comment report published by Moody’s in 2011 (the Report) (Notes 1 & 2).

Moody’s application was made after the Court of Appeal dismissed its appeal against the determination of the Securities and Futures Appeals Tribunal (SFAT) on 31 March 2016 which affirmed the SFC’s decision to reprimand and fine Moody’s for breaching the Code of Conduct in its preparation and publication of the Report (Note 3).  In dismissing Moody’s appeal, the Court of Appeal said in its 8 June 2017 ruling that it agreed that misconduct on the part of Moody’s can be established on the basis that the preparation and publication of the Report formed part and parcel of the carrying on of the business of credit ratings by Moody’s (Notes 4 & 5). 

Notes:

1. Moody’s is licensed to carry on business in Type 10 regulated activity (providing credit rating services) since 1 June 2011.
2. The Court of Appeal’s judgment dated 17 October 2017 (Civil Appeal No. 103 of 2016) will be available on the Judiciary’s website at www.judiciary.gov.hk.
3. Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (Code of Conduct).
4. For further details of the SFAT’s determination, please see the SFC’s press release dated 5 April 2016.  The SFAT’s determination is available on the SFAT’s website at www.sfat.gov.hk.
5. For further details of the Court of Appeal’s judgment dated 8 June 2017, please see the SFC’s press release dated 8 June 2017.  The Court of Appeal judgment (CACV103/2016) is available on the Judiciary’s website (www.judiciary.hk).