Overview

The Securities and Futures Commission (SFC) has completed some 227 enforcement cases resulting in the issuance of 42 disciplinary sanctions (with seven life bans imposed in 2010 alone), commenced 41 criminal prosecutions and brought 10 civil proceedings

Broadly speaking, life bans have been imposed:

• Whenever misconduct involves the misappropriation/theft (or attempted theft) of client assets of whatever value;

• Where the dishonest behaviour was designed to deceive or otherwise harm the interests of investors, especially when deliberately concealed to prevent detection; and

• Where the misconduct takes place over a long period of time and involves the abuse by responsible officers of their seniority in procuring the assistance of subordinates to conduct unlawful activities.

Faced with this apparent staggering increase in the severity of sanctions imposed, Dechert addresses the changing philosophy of the regulator on life bans.

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