Investment fund promoter, Ms Kwok Sau Ping, was convicted last week at the Eastern Magistrates Court of issuing documents in relation to a collective investment scheme without the authorization of SFC and not disclosing interests in listed securities on time. Kwok was fined a total of $12,000 and ordered her to pay SFC investigation costs of $ 80,000.
The Court found that on 13 and 20 October 2007, Kwok held a series of public presentations to promote a collective investment scheme called Reliance China Hong Kong Opportunity Fund. Kwok conducted the presentations using Powerpoint slides, which were not authorized by SFC. A total of 120 investors subscribed to the Fund.
Kwok, who controlled the Fund, was deemed to be interested in the Fund's investments which included an indirect interest in 60 million shares of Hong Kong-listed Bel Global Resources Holdings Limited, and she failed to disclose it within three business days.
Jack's comment: Some people may think that only displaying but not distributing Powerpoint slides about an unauthorized investment product would not constitute a breach of SFO. I don't think so, because the document is still "issued" (the term "issue" is broadly defined under S.102 of SFO) as an invitation to the public for inducing investment.
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