TO THE BUSINESS EDITOR
FOR IMMEDIATE RELEASE
9 December 1999
The Securities and Futures Commission (SFC) announced today that it had publicly reprimanded China Pacific Securities Limited (China Pacific), a registered dealer under the Securities Ordinance (SO) and Sze Suk Ling (Sze), the Dealing Director of China Pacific, in respect of their conduct in handling the settlement of clients' sales executed on 27 and 28 August 1998.
The SFC conducted an inquiry under section 56 of the SO which revealed that in handling the settlement of clients' sales executed on 27 and 28 August 1998, China Pacific and Sze had failed to observe the T+2 settlement requirement of the Central Clearing and Settlement System (CCASS) and allowed their clients to settle their sales beyond T+2 thereby prejudicing the settlement system of the Hong Kong Central Clearing Corporation. In addition, China Pacific and Sze also exposed their cash clients to unnecessary risk by failing to transfer promptly such clients' securities from its CCASS clearing account to its segregated account thereby causing these clients' shares to be taken up by CCASS to cover the settlement shortfalls of sales executed by China Pacific on behalf of other clients on 27 and 28 August 1998. Such misconduct impugned the fitness and properness of China Pacific and Sze's as a registered dealer.
For further information, please contact Susanne Ho at 2840-9470.
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