Securities and Futures Commission of Hong Kong

Securities Regulatory Commission on BRIGHT International (Hong Kong) Limited and Chen Peng reprimanded and imposed fines for aiding and abetting unlicensed trading and other misconductOct 24, 2005 BRIGHT International (Hong Kong) Limited and its responsible officer Chen Peng (male) reprimanded and imposed fines of $75,000 and $60,000 respectively for aiding and abetting unlicensed transactions, publishing misleading information Supervise unlicensed customer service executives. This is the action taken by the SFC after reaching a settlement with Yaocai and Chen (Note 1). After investigation, the SFC found that Chen Mingzhi allowed an unlicensed employee to conduct securities trading activities from May 4, 2004 to August 6, 2004. The staff member and Chan were successfully prosecuted by the SFC on 5 May 2005 for unlicensed dealing and aiding and abetting respectively (Note 2). Chen was also found to have permitted misleading content in a newsletter to be published on Bright Talent's website in June 2004. The communication stated that one of the duties of Bright Talent's client service officers was to provide investment analysis, and revealed that the client service officers concerned were providing services that fell under Type 4 (advising on securities) regulated activity and that at the time three of them were Without a license. Chen was responsible for assigning work to customer service executives, but did not supervise their work. In July and August 2004, the three unlicensed persons advised clients who called Bright Talent's customer service hotline to buy certain specified stocks. After careful study, the SFC concluded that Yiu Choi and Chan violated paragraph 4.3 and general principles 2, 3 and 7 of the Code of Conduct for Persons Licensed by or Registered with the SFC, and their fitness and properness was questioned. In determining the amount of fines and penalties, the SFC took into account the Guidelines on Disciplinary Penalties (Note 3) and various circumstances of the case, including the following facts: The SFC reprimanded and fined 50,000 yuan (Note 4); Chen pleaded guilty to the charge of aiding and abetting unlicensed activities and was fined by the court; In an internal circular issued by Bright Talent in September 2004, it reminded unlicensed staff not to conduct regulated activities; Bright Talent installed an additional recording system to record the telephone conversations of its customer service officers as a means of improving its internal control system and appointed a responsible officer to supervise them; and Bright Talent and Chan in the SFC Cooperated during the investigation and in resolving the disciplinary action with the SFC in a settlement. The SFC considers that the settlement is in the interests of the investing public and the public interest. Mr. Alan Linning, executive director of the SFC's Regulatory Enforcement Department, said: "It is a criminal offense to carry out regulated activities without a license from the SFC. Licensees who aid and abet unlicensed activities will be prosecuted and subject to disciplinary action .Furthermore, brokerage firms should bear in mind to ensure that their staff carrying on regulated activities are properly licensed and that their publications do not contain false and misleading information." Notes to End Editor: 1. BRIGHT International (Hong Kong) Limited is licensed to carry on the business of Type 1 (dealing in securities) regulated activity under the Securities and Futures Ordinance. Chen is affiliated BRIGHT A licensed representative and responsible officer of International (Hong Kong) Limited and Bright Futures and Commodities Limited, who is licensed to carry on Type 1 (dealing in securities) and Type 2 (dealing in futures contracts) regulated activities. 2. For details, please refer to the press release issued by the SFC on 5 May 2005. 3. In March 2003, the SFC issued the Guidelines on Disciplinary Penalties under section 199(1)(a) of the Securities and Futures Ordinance. The guidelines can be found in "Legislative and Regulatory Handbook" - "Regulatory Handbook" - "Code, Guidelines and Circulars" on the SFC website. 4. For details, please refer to the press release issued by the SFC on 25 November 2004. Last updated on August 01, 2012