Posted inRegulation

HK regulator fines Ninety One for unlicensed futures trading

Yet, there was no evidence that suggests it was intentional, said the Securities and Futures Commission.

The Hong Kong Securities and Futures Commission (SFC) has reprimanded and fined asset manager Ninety One HK$1.4m ($178,000) for unlicensed futures trading, according to an announcement by the regulator.

The asset manager was found to have executed over 4,800 trades in futures contracts for portfolios managed by its three overseas affiliates without the required licence.

According to the SFC database, Ninety One Hong Kong (NOHK) only has licences to deal, advise on securities and conduct asset management businesses.

Nonetheless, the asset manager executed the future trades without a Type 2 (dealing in futures contracts) licence between April 2014 and January 2020.

In deciding the sanction, the SFC took into account that there is no evidence to suggest that the failure was intentional or deliberate, there was no client loss as a result of NOHK’s futures trading activities and the firm reported the incident to the SFC shortly after identifying the suspected breach and ceased its futures trading activities thereafter.

It also noted that the asset manager cooperated with the regulatory watchdog in resolving its concerns and has an otherwise clean disciplinary record.

Part of the Mark Allen Group.