The Hong Kong Securities Regulatory Commission disclosed an announcement yesterday (June 19), announcing a reprimand and a fine of HK$1.3 million on Taiping Securities (Hong Kong) Co., Ltd. Committing internal control deficiencies in relation to employee transactions during 30 November 2018.

The Hong Kong Securities Regulatory Commission stated that after investigation, it was found that during the period from January 1, 2016 to November 30, 2018, Taiping Securities did not implement sufficient and effective internal control measures to monitor the transactions of employees. In this regard, the senior management, the compliance department and a responsible person responsible for monitoring employee transactions did not have a clear and consistent understanding of their roles and responsibilities, and Pacific Securities did not keep any records of their review of employee transactions. The responsible officer's personal transactions were not independently reviewed and approved, including 293 transactions that exceeded the transaction limits stipulated in his personal account.

In addition, Pacific Securities failed to inform all employees of its personal trading policy applicable during the relevant period and ensure that they understood and complied with its policy.