Under S.103 of SFO, it is illegal to advertise an offer to acquire or dispose shares in HK, unless you are subject to certain specified exemptions (e.g. you are a Type 1/4/6 intermediary). In the past there were people prosecuted by SFC for making such illegal offers via newspapers or other mass media.
On 13 Nov 2006, an Australian company Empowernet International Ltd published an advertisement in SCMP offering its shares for sale to investors in Hong Kong. No prospectus was registered with SFC for the offer nor was the advertisement authorised by SFC.
SFC investigated the matter and found that no Hong Kong investor had accepted the offer. Upon SFC’s request, the company had retracted the offer and undertaken not to offer any shares to investors in HK. It has also published a correction in SCMP on 12 Apr 2007.
As explained by SFC, given the steps taken by the company to rectify the matter and that there was no harm or damage caused to investors, SFC will take no further action. I think if SFC would probably prosecute this company if it was within HK's jurisdiction.
For curiosity, I checked with websites and found that Empowernet International is going to be listed on ASX. Interestingly, it is a provider of personal development seminars and associated products and services based upon intellectual property produced by the famous motivational speaker Anthony Robbins!
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