On 8th August 2023, the Securities and Futures Commission (SFC) published its Consultation Conclusions on the changes to Hong Kong’s insider dealing regime under the Securities and Futures Ordinance (SFO). The current insider dealing regime only covers securities that are listed on the Hong Kong Stock Exchange, and Courts often have to resort to section 300 of the SFO on prohibiting fraudulent or deceptive schemes in transactions involving securities for cases that involve securities that are listed on overseas markets. The Consultation Conclusions expands the insider dealing provisions to also include dealings in overseas listed securities and derivatives to broaden its territorial scope. This webinar provides a detailed overview of the following aspects under the current and amended insider dealing regime in Hong Kong: – Definitions of insider dealing under sections 270 and 291 of the SFO; – Definition of “listed securities”; – Definition of “connected persons” and “related corporations”; – Definition of “inside information”; – Defences to insider dealing; – Roles of the Market Misconduct Tribunal (MMT) and sanctions that can be imposed; – Civil and Criminal liability of insider dealing in Hong Kong with landmark cases explained; – Amendments to expand insider dealing to cover overseas- listed securities and insider dealing conducted overseas; – Difference in the nature and amount of relief available under section 300 of the SFO and the insider dealing regime.
