(1) Investigations
This table shows the number of investigations carried out by the Enforcement Team during the first six months of 2019 (as compared to the previous two years).
|
Six months ended
30/6/2019(1) |
Six months ended
30/6/2018(1) |
Six months ended
30/6/2017(1) |
|
MB |
GEM |
Total |
MB |
GEM |
Total |
MB |
GEM |
Total |
| Investigations |
64 |
21 |
85 |
57 |
20 |
77 |
54 |
15 |
69 |
| Cases involving: |
|
| Company |
60 |
19 |
79 |
53 |
17 |
70 |
46 |
14 |
60 |
| Current directors |
15 |
5 |
20 |
11 |
10 |
21 |
14 |
4 |
18 |
| Former directors |
25 |
7 |
32 |
22 |
12 |
34 |
18 |
8 |
26 |
| (1) |
Figures cover all cases investigated during the period (both concluded cases and cases that remain ongoing). |
(2) Issues under Investigation
The Enforcement Team has adopted a thematic approach to enforcement activity since 2014. Whilst the Enforcement Team will continue to pursue any breach of the Listing Rules (as per the Enforcement Policy Statement), during the first six months of 2019, 89% of all investigations related to one or more of the enforcement themes identified below.
| ISSUES |
Six months ended
30/6/2019(1) |
Six months ended
30/6/2018(1) |
Six months ended
30/6/2017(1) |
|
MB |
GEM |
Total |
MB |
GEM |
Total |
MB |
GEM |
Total |
| ENFORCEMENT THEMES(2) |
|
| (1) Directors’ duties |
21 |
4 |
25 |
17 |
5 |
22 |
7 |
3 |
10 |
| (2) Failure to cooperate with an Exchange investigation |
1 |
0 |
1 |
4 |
1 |
5 |
6 |
1 |
7 |
| (3) Inaccurate, incomplete and/or misleading disclosure in corporate communication |
0 |
1 |
1 |
3 |
1 |
4 |
1 |
1 |
2 |
| (4) Failure to comply with procedural requirements in respect of notifiable/connected transactions |
4 |
1 |
5 |
5 |
0 |
5 |
5 |
1 |
6 |
| (5) Repeated breaches of the Listing Rules |
0 |
1 |
1 |
0 |
1 |
1 |
0 |
0 |
0 |
| (6) Delayed trading resumption |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| (7) Financial reporting - delays, or internal controls and corporate governance issues |
2 |
0 |
2 |
1 |
0 |
1 |
1 |
0 |
1 |
| MULTIPLE THEMES(3) |
32 |
9 |
41 |
23 |
10 |
33 |
26 |
8 |
34 |
| OTHERS: |
|
| Other Listing Rules not falling into any of the above categories |
4 |
5 |
9 |
4 |
2 |
6 |
8 |
1 |
9 |
| (1) |
Figures cover all cases investigated during the period (both concluded cases and cases that remain ongoing). |
| (2) |
Enforcement themes represent those that are the main focus of an investigation (whether or not it involves other issues). An investigation covering more than one enforcement theme will be disclosed under multiple themes. |
| (3) |
Number of investigations during the period under multiple themes involving Theme (1): (2019: 37; 2018: 25; 2017: 28); Theme (2): (2019: 1; 2018: 2; 2017: 2); Theme (3): (2019: 12; 2018: 14; 2017: 18); Theme (4): (2019: 21; 2018: 18; 2017: 15); Theme (5): (2019: 6; 2018: 7; 2017: 5); Theme (6): (2019: 5; 2018: 2; 2017: 1); Theme (7): (2019: 20; 2018: 13; 2017: 11). |
(3) Outcome of Enforcement Actions by Listing Committee and Enforcement
|
Six months ended
30/6/2019 |
Six months ended
30/6/2018 |
Six months ended
30/6/2017 |
|
MB |
GEM |
Total |
MB |
GEM |
Total |
MB |
GEM |
Total |
| Sanctions imposed(1) |
|
| Public censures |
3 |
0 |
3 |
7 |
4 |
11 |
3 |
0 |
3 |
| Public statements involving criticism |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| Other public statements(2) |
0 |
0 |
0 |
0 |
1 |
1 |
0 |
0 |
0 |
| Private reprimands |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| Directions involving(3): |
|
| Internal Control Review |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| Retention of Compliance Advisor |
1 |
0 |
1 |
0 |
3 |
3 |
1 |
0 |
1 |
| Training of Directors |
3 |
0 |
3 |
2 |
3 |
5 |
2 |
0 |
2 |
| Warning/ caution letters issued by Enforcement only |
2 |
5 |
7 |
5 |
1 |
6 |
4 |
0 |
4 |
| Average time for completion of an investigation in the first six months of 2019 (from commencement of investigation to the decision as to the regulatory action to be taken) was 8.8 months. |
| (1) |
These figures represent the primary regulatory sanction imposed in a disciplinary action and save for (2) below, do not include other sanctions that may be imposed in the same action. |
| (2) |
Include Rule 2A.09(7) statement (GEM: GEM Listing Rule 3.10(7)) where, in the case of wilful or persistent failure by a director to discharge his responsibilities under the Listing Rules, the Exchange states its opinion that the retention of office by that director is prejudicial to the interests of investors; and also where the Listing Committee expresses its views that it would be minded to make such a statement had the resigned director stayed in office. These figures are in addition to and do not form part of the total number of primary regulatory sanctions imposed. |
| (3) |
These figures represent the total number of directions given in addition to the primary regulatory sanction imposed in a disciplinary action. |
(4) Number of Directors Subject to Disciplinary Sanctions
|
Six months ended
30/6//2019 |
Six months ended
30/6//2018 |
Six months ended
30/6//2017 |
|
MB |
GEM |
Total |
MB |
GEM |
Total |
MB |
GEM |
Total |
| Executive directors |
11 |
0 |
11 |
13 |
23 |
36 |
9 |
0 |
9 |
| Non-executive directors |
0 |
0 |
0 |
1 |
4 |
5 |
2 |
0 |
2 |
| Independent non-executive directors |
4 |
0 |
4 |
6 |
13 |
19 |
0 |
0 |
0 |
|
Total |
15 |
0 |
15 |
20 |
40 |
60 |
11 |
0 |
11 |