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For the year ended 31/12/2020

(1) Investigations  
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.