Insider Dealing Compliance Issues And Cases Test

12 Questions | By Catherinehalcomb | Last updated: Mar 22, 2022 | Total Attempts: 157

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Questions and Answers

1.

What is the maximum fine for a criminal offence of insider dealing under Hong Kong Laws?
- A.
  
  HK$1 million
- B.
  
  HK$10 million
- C.
  
  HK$100 million
2.

Who is connected person of a listed company?
- A.
  
  Director
- B.
  
  Employee
- C.
  
  Substantial Shareholder
- D.
  
  All of the above
3.

Hong Kong SFC has the dual power to conduct both civil (before the Market Misconduct Tribunal) and criminal (before the court) proceeding.
- A.
  
  True
- B.
  
  False
4.

Peter is a Director of a listed company who discloses price sensitive and confidential information to his girlfriend for conducting insider dealing. What is Peter's role?
- A.
  
  Tipper
- B.
  
  Tippee
- C.
  
  Innocent Agent
5.

Andrew is the lawyer handling a transaction for an acquisition for a listed company. Is Andrew a connected person to this listed company?
- A.
  
  Yes
- B.
  
  No
6.

The definition of Non-public Price Sensitive Information (PSI) under the Securities and Futures Ordinance means specific information about the following:
- A.
  
  A corporation
- B.
  
  A shareholder or an officer of the corporation
- C.
  
  The listed securities or derivatives of the corporation
- D.
  
  All of the above
7.

Which of below is NOT a statutory defence under S.271 of the Securities and Futures Ordinance relating to insider dealing?
- A.
  
  No Motive
- B.
  
  Good Faith
- C.
  
  Innocent Agent
- D.
  
  Reasonable use
8.

Which of below is NOT sanction or order relating that Market Misconduct Tribunal can impose relating to insider dealing?
- A.
  
  Disqualification order of not allowing a relevant person continuing to act as director
- B.
  
  Cold shoulder order
- C.
  
  Winding Up Order
9.

The Market Misconduct Tribunal can prohibit a person from being a director, liquidator, receiver or manager of a listed company for a period not exceeding 5 years.
- A.
  
  True
- B.
  
  False
10.

Insider dealing may be prevented if a SFC licensed corporation:
- A.
  
  Provides more compliance training to staff
- B.
  
  Keeps a restricted list for relevant stocks
- C.
  
  Reviews Chinese wall policy from time to time to ensure compliance
- D.
  
  All of the above
11.

Which of below is NOT an example of possible inside information concerning a corporation as listed out in the SFC Guidelines on Disclosure of Inside Information issued in June 2012?
- A.
  
  Changes in financial condition, e.g. cashflow crisis, credit crunch
- B.
  
  Market rumours and media speculation
- C.
  
  Changes in control and control agreements
- D.
  
  Changes in auditors
12.

What percentage of share price change of a relevant listed company is deemed to be "material” or “significant” or “substantial” in an insider dealing under the Securities and Futures Ordinance?
- A.
  
  1%
- B.
  
  5%
- C.
  
  10%
- D.
  
  Securities and Futures Ordinance does not set the percentage