For the year ended 31 December 2020
|
Twelve months ended
31/12/2020 |
Twelve months ended
31/12/2019 |
Twelve months ended
31/12/2018 |
|
MB |
GEM |
Total |
MB |
GEM |
Total |
MB |
GEM |
Total |
| Investigations |
107
(70)
|
21
(14)
|
128
(84)
|
88
(64)
|
24
(21)
|
112
(85)
|
87
(57)
|
24
(20)
|
111
(77)
|
| Investigations commenced |
56
(26)
|
12
(6)
|
68
(32)
|
-- |
-- |
-- |
-- |
-- |
-- |
| Investigations completed |
25
(19)
|
9
(5)
|
34
(24)
|
-- |
-- |
-- |
-- |
-- |
-- |
| |
The average time for completion of an investigation for the year ended 31 December 2020 was 8.7 months.
In carrying out the Exchange’s regulatory functions, during the year ended 31 December 2020, the Listing Division has made 52 referrals to other law enforcement agencies (excluding those which solely involve a possible breach of Part XIVA of the Securities and Futures Ordinance). |
| |
| Notes: |
| (1) |
The figures in brackets represent the figures for the six-month period ended 30 June of the relevant year. |
| (2) |
The Investigations figures represent investigations carried out by Enforcement during the period, including those carried over to the relevant period and those not concluded at the end of the relevant period.
|
| (3) |
An investigation is completed when the regulatory action to be taken is decided. |
| (4) |
The statistics for investigations “commenced” and “completed” during the year are newly published from 2020, no prior figures are disclosed. |
| |
|
| (2) Enforcement themes under Investigation |
| |
|
| Enforcement Theme |
Twelve months ended
31/12/2020 |
Twelve months ended
31/12/2019 |
Twelve months ended
31/12/2018 |
|
MB |
GEM |
Total |
MB |
GEM |
Total |
MB |
GEM |
Total |
| (1) Directors’ duties |
86 |
12 |
98 |
67 |
15 |
82 |
61 |
15 |
76 |
| (2) Failure to cooperate with an Exchange investigation |
13 |
5 |
18 |
6 |
2 |
8 |
6 |
2 |
8 |
| (3) Inaccurate, incomplete and/or misleading disclosure in corporate communication |
17 |
4 |
21 |
12 |
5 |
17 |
14 |
5 |
19 |
| (4) Failure to comply with procedural requirements in respect of notifiable/connected transactions |
50 |
8 |
58 |
32 |
8 |
40 |
23 |
7 |
30 |
| (5) Repeated breaches of the Listing Rules |
11 |
3 |
14 |
8 |
3 |
11 |
4 |
4 |
8 |
| (6) Delayed trading resumption |
3 |
0 |
3 |
3 |
0 |
3 |
4 |
0 |
4 |
| (7) Financial reporting - delays, or internal controls and corporate governance issues |
19 |
4 |
23 |
22 |
8 |
30 |
22 |
3 |
25 |
| Cases not falling into any of the above categories |
5 |
2 |
7 |
4 |
4 |
8 |
8 |
2 |
10 |
| Note: An investigation may involve one or more themes. |
| |
|
| (3) Enforcement Actions and Sanctions |
|
| |
|
|
Twelve months ended
31/12/2020 |
Twelve months ended
31/12/2019 |
Twelve months ended
31/12/2018 |
| Disciplinary actions commenced |
20
(8)
|
21
(9)
|
12
(6)
|
| Disciplinary actions concluded |
13
(9)
|
13
(3)
|
21
(11)
|
| Sanctions/Directions |
|
|
Issuers |
Individuals |
Issuers |
Individuals |
Issuers |
Individuals |
| Prejudice statements |
-- |
8
(7)
|
-- |
5
(0)
|
-- |
19
(17)
|
| Public censures |
6
(3)
|
20
(15)
|
7
(3)
|
42
(15)
|
12
(4)
|
61
(23)
|
| Public statements involving criticism |
2
(1)
|
27
(21)
|
1
(1)
|
5
(0)
|
2
(0)
|
24
(10)
|
| Private reprimands |
0
(0)
|
4
(3)
|
0
(0)
|
15
(0)
|
0
(0)
|
12
(6)
|
| Internal control review |
2
(0)
|
-- |
2
(0)
|
-- |
2
(0)
|
-- |
| Appointment of compliance adviser |
1
(0)
|
-- |
3
(1)
|
-- |
8
(3)
|
-- |
| Director training |
-- |
13
(2)
|
-- |
52
(15)
|
-- |
87
(60)
|
| Regulatory letters issued by Enforcement |
10
(5)
|
12
(8)
|
10
(5)
|
22
(10)
|
13
(6)
|
14
(6)
|
| Notes: |
| (1) |
The figures in brackets represent the figures for the six-month period ended 30 June of the relevant year. |
| (2) |
A disciplinary action is concluded after the hearing/final review and: (i) where a public sanction is imposed, its outcome is published; or (ii) where no public sanction is imposed, the decision letter is issued. |
| (3) |
“Prejudice statements” includes sanctions in which, in addition to a public censure, the Exchange makes a statement of opinion under Chapter 2A (GEM: Chapter 3) that the retention of office by that director is/would have been prejudicial to the interests of investors. |
| (4) |
The figures for “Public censures” exclude those individuals subject to a Prejudice statement. |