Hong Kong's Securities And Futures Commission: Defendants Acquitted Of Unlicensed Dealing

The District Court today acquitted IPFUND Asset Management Limited (IPFUND) and Mr Ronald Sin Chung Yin of charges of dealing in securities without a licence (Note 1).  

The Judge found that IPFUND was carrying on a business in operating 16 collective investment schemes at the relevant time. However he found that when the investors were investing in these schemes, they were in fact acquiring shares in private shell companies which held the real properties in question and as the definition of "securities" excluded shares of private companies, he held that there was no "dealing in securities". 

The case was prosecuted by the Prosecutions Division of the Department of Justice. The Securities and Futures Commission (SFC) is reviewing the decision.

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Note:

1. IPFUND and Sin were charged with offences under section 114 of the Securities and Futures Ordinance. Please see the SFC’s press releases dated 13 January 2015 and 31 March 2015.