To Catch a Tiger: Cross Border Regulation At Its Best

//To Catch a Tiger: Cross Border Regulation At Its Best

The case of Tiger Asia Management LLC (Tiger Asia) shows that the Securities & Futures Commission of Hong Kong (HK SFC) has thrown down the gauntlet to foreign participants operating outside their jurisdiction, but who violate securities laws on their turf. Recently, the HK SFC was given the all clear by The Hong Kong Court of Final Appeal to proceed with its civil action for damages against Tiger Asia and its management for insider dealing on the Hong Kong Stock Exchange, even though the hedge fund is neither regulated, nor has any presence in the region.

Recent HK SFC action against Tiger Asia illustrates, that it not only acts as an enforcer, but is prepared to be a civil protector of collective interests for persons dealing on Hong Kong securities’ markets, who have been injured by regulatory misconduct by firms operating outside their jurisdiction. The message from the HK SFC is clear: if you violate our laws we will not hesitate to take civil action even if we don’t regulate you! This matter is interesting because both the US SEC and the HK SFC have taken parallel enforcement action on both sides of the Pacific against Tiger Asia, with different, but successful outcomes. As a result, foreign corporations operating outside the jurisdiction and not registered in Hong Kong cannot ignore the SFC regulatory action or the recent decision of the Hong Kong Court of Final Appeal. This is because of the multi – million damages and penalty awards that may-be made against foreign firms in any regulatory action…

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2016-12-20T11:40:47+00:00By |