On 5 May 2015, Hong Kong’s SFC publicly reprimanded and fined Kingston Securities Limited (Kingston) HK$500,000 for breaching Macao law. It was found that an employee of Kingston, while staying in Macao, opened securities accounts, took orders and payment from 22 Macao residents who each bought PCCW shares. Following the Monetary Authority of Macao’s final ruling of October 2014 to sanction Kingston for providing financial intermediary services in Macao without regulatory authorisation, the SFC took disciplinary action against Kingston.

Prior to the disciplinary action, the SFC had issued a circular to remind licensed corporations of their obligation to comply with the regulatory requirements of foreign jurisdictions.

In its press release on the action against Kingston, the SFC reiterated the importance for licensed corporations to comply with foreign laws. It stated that the duty of a licensed corporation to demonstrate reputation, character and reliability is not restricted to conduct in Hong Kong; and contravention of the laws of where a licensed corporation conducts its business activities casts doubts on the licensed corporation’s fitness and properness.