The Hong Kong Court of First Instance has mandated AMTD Global Markets Limited to submit requested records and pay a financial penalty due to its failure to adhere to statutory notices from the Securities and Futures Commission (SFC). This action stems from legal proceedings initiated by the SFC related to AMTD’s non-compliance during investigations concerning allegations of fraudulent or deceptive practices and the dissemination of false or misleading information regarding initial public offerings of certain companies for which AMTD served as bookrunner, lead manager, and underwriter.
The Court issued an order directing AMTD to fulfill the requirements of the outstanding SFC notices by January 19, 2026. Furthermore, the Court has indicated that AMTD will face penalties for contempt of court because of its prior failure to comply. The exact amount of the fine is yet to be determined.
In rejecting AMTD’s defenses for its non-compliance, including changes in ownership and management and the purported relocation or loss of records, the Court deemed these justifications insufficient. The SFC’s Executive Director of Enforcement emphasized that non-compliance with the Securities and Futures Ordinance (SFO) would not be tolerated. Licensed firms are expected to cooperate fully with SFC investigations and provide requested information, as failure to do so jeopardizes market integrity and will prompt rigorous enforcement actions.
The implications of this ruling highlight the importance of compliance within the financial services sector in Hong Kong. The SFC’s commitment to maintaining market integrity reinforces the necessity for firms to adhere to regulatory practices diligently. Companies, particularly in the securities field, must understand that failure to comply with investigation requests can lead to significant legal repercussions, including financial penalties and reputational damage.
The actions taken by the court against AMTD serve as a cautionary tale for other licensed firms. The expectation is clear that regulatory bodies will enforce compliance rigorously, and firms should be prepared for the consequences of any lapses in adhering to the rules and regulations governing their operations. This case underscores the vast responsibilities of financial institutions to maintain transparency and trust in their dealings within the marketplace.