On 2 November 2015, the Hong Kong Securities and Futures Commission (SFC) published its Statement of Disciplinary Action against Okasan International (Asia) Limited (Okasan) for deficiencies in selling practices in relation to unlisted investment products.
Okasan was publically reprimanded and fined HK$4 million (approximately US$516,000). The SFC found that Okasan had violated the requirements of a number of the SFC’s codes and guidelines, including a failure to:
- conduct adequate due diligence on the unlisted investment products;
- ensure the recommendations made to its clients were suitable and reasonable;
- maintain proper records of the investment advice or provide clients with a copy of the investment advice; and
- disclose the trading profits it made from the back-to-back transactions to clients.