HK SFC Reprimands And Fines Kaiser $1.7 Million
Kaiser Securities and Kaiser Futures were fined $1 million and $700,000 respectively.
The SFC found that between 2004 and 2011, Kaiser conducted securities business in Macau at the premises of Unified Securities (Macau) Limited (Unified) and provided services to clients in respect of their trading in securities, futures and options in the Hong Kong market in Macau through Unified contrary to Macanese law.
The SFC considers the contravention of the laws of Macau has called into question the reputation, character and reliability of Kaiser Securities and Kaiser Futures.
In determining the penalty, the SFC took into account that:
- Kaiser conducted the unauthorized financial activities in Macau over a prolonged period of time and had profited from the activities;
- demonstrating sound reputation, character and reliability is fundamental to the fitness and properness of a licensed person;
- a clear message needs to be sent to the market that it is imperative for a licensed person to comply with all requirements of any regulatory authority and any local laws and regulations that are applicable to it;
- Kaiser had been fined by the Macau authority;
- Kaiser have an otherwise clean disciplinary record; and
- Kaiser co-operated in resolving these disciplinary proceedings.
The SFC issued a circular to intermediaries in January 2014 reminding intermediaries about their obligations when conducting cross-border business, including the importance of ensuring compliance with all relevant laws and obligations.