The Securities and Futures Commission (SFC) has issued a reprimand to Bright Smart Securities International (H.K.) Limited (Bright Smart) and fined it $700,000 for allowing an advertisement which contains false and/or misleading information to be published (Note 1).
The advertisement, which was published in four newspapers and on the website (www.bsgroup.com.hk) belonging to Bright Smart from 27 August to 14 September 2013, gave the false impression that the gold bullion business of Bright Smart Securities and Commodities Group Ltd (BS Group) is regulated and that Bright Smart Global Bullion Limited (BS Bullion) is regulated by the SFC when, in fact, gold bullion business is not a regulated activity under the Securities and Futures Ordinance, and BS Bullion is not licensed by the SFC to carry on any regulated activities (Note 2).
Bright Smart is a wholly owned subsidiary of BS Group, a company listed on The Stock Exchange of Hong Kong Limited. BS Bullion is also a wholly owned subsidiary of BS Group and carries on gold bullion business.
The SFC concludes that the fitness and properness of Bright Smart has been called into question.
In deciding the sanctions, the SFC took into account that Bright Smart has co-operated with the SFC in resolving these disciplinary proceedings.
Notes:
- Bright Smart is licensed under the Securities and Futures Ordinance (SFO) to carry on Type 1 (dealing in securities), Type 4 (advising on securities) and Type 7 (providing automated trading services) regulated activities.
- The information contained in the advertisement does not, however, constitute false or misleading information inducing transactions for the purpose of the market misconduct provisions of the SFO.
- A copy of the Statement of Disciplinary Action in relation to the matter is available on the SFC website.
