In 2009, the Market Misconduct Tribunal (“MMT”) found that Daniel Tsien Pak Cheong (“Mr Tsien”), had been guilty of insider trading whilst employed as an equity salesman of JP Morgan, contrary to Section 270 (1)(c) of the Securities and Futures Ordinance, Cap 571 (“SFO”). The MMT suspended Mr Tsien’s trading licence for nine months and ordered him to pay over HK$2 million costs.
Mr Tsien applied to the Securities and Futures Appeal Tribunal (“SFAT”), under Section 217 of the SFO, for a review of that decision. The appeal was successful and the SFAT replaced the life long ban with a 10 year one.
The SFC then appealed to the Court of Appeal.
The Court of Appeal rejected the SFC’s argument that the SFAT should give SFC decisions “special respect”.
The judgment is at present “provisional” because it has to be referred to the Standing Committee of the National People’s Congress.
Today’s ruling by the Standing Committee of the National People’s Congress confirms that state immunity in Hong Kong is absolute.