Securities Industry News

A former broker in Sydney, Australia, has pleaded guilty to insider trading and releasing inside information. But his actions smell of front running.

All day yesterday, every notice that came into this office was carefully scrutinised: we did not want to fall prey to anyone's April Fool's joke. A notice from the Hong Kong Securities and Futures Commission needed more careful reading than most. Was it a joke, a statement of the obvious or responding to a genuine concern that there is widespread misunderstanding as to the extent of permissions granted under the licensing regime? It turns out that it's the latter - it's all about boiler rooms and stock promoters.

The Financial Services Authority (FSA) yesterday charged seven people with 13 charges in respect of conspiracy to deal on inside information obtained by the defendants from two major investment banks. But it's not in the case that's most recently been in the headlines.

The UK has wound up five companies involved in "land banking." But there's a fascinating dimension to the case. Where was the FSA when it came to enforcement against unauthorised collective investment schemes?

A hacker has broken into the internal computer systems of an agent of a listed company, stolen information and then used that information to make a large profit in an insider trading scheme. The case extends the scope of insider trading laws in the US to include those cases where there is no breach of a "fiduciary duty" and is one of the most important cases in insider trading-related topics in the USA.

SEC settles conflict of interest charges against investment advisers who, it was alleged, solicited and accepted bribes to pass business to certain brokers and who did not disclose the bribes or the conflict of interest to clients.

An investigation by the Hong Kong Securities and Futures Commission uncovered an astonishing set of circumstances in which Fukoku Investment (Asia) Ltd made available office space and facilities for employees of Peninsula Capital Ltd. The only problem was - PCL was a boiler room scam.

The Hong Kong Securities and Futures Commission (SFC) has banned Mr Ryan Fong Yen-hwung, a former portfolio fund manager at HSZ (Hong Kong) Ltd (HSZ), from re-entering the industry for life

The UK's Financial Services Authority has carried out its largest ever raid: 143 FSA staff plus Serious and Organised Crime Agency officers have arrested six people in raids against 16 properties.

Hong Kong's Securities and Futures Commission has issued a warning to both licensed corporations and their clients after a review of IT security. Some of the deficiencies it found are disturbing.