The Securities and Futures Commission (SFC) has imposed a fine of $1.3 million on Taiping Securities (HK) Co Limited (TSCL) for inadequate internal controls over monitoring employee dealings between January 2016 and November 2018. The SFC’s investigation discovered that TSCL failed to implement effective internal controls, leading to confusion and inconsistency in the roles and responsibilities of senior management, the compliance department, and the responsible officer (RO) responsible for monitoring employee dealings. Additionally, TSCL neglected to communicate its personal dealing policy to all employees and ensure that they followed it. The SFC considered TSCL’s disciplinary record and remedial measures taken to enhance its internal systems and controls when determining the disciplinary sanctions.
Resuorce: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR64
