Hong Kong Court Confirms the SFC’s Broad Powers to Share Investigation Materials with Overseas Regulators

27 February 2019
View Debevoise Update
Key takeaways:
  • On 11 February 2019, the Hong Kong Court of First Instance dismissed a judicial review application in AA & EA v. The Securities and Futures Commission, [2019] HKCFI 246, confirming the broad powers of the Securities and Futures Commission to share information obtained using its investigative powers with overseas regulators. The decision also clarifies that the privilege against self-incrimination may operate in respect of demands for information under section 181 of the Securities and Futures Ordinance.
  • In view of these information-sharing powers, licensed entities should ensure that they adopt a consistent and coordinated strategy when responding to regulator requests, particularly where a regulatory investigation is likely to have multi-jurisdictional aspects.
  • Licensed entities should also ensure that they expressly assert any privilege against self-incrimination where applicable including when responding to notices under section 181.