Dr Wise Explains SFC's Settlement Policy in Disciplinary Proceedings

The SFC today issues the August issue of the Dr Wise’s Column.  In Why Does the SFC Settle Disciplinary Cases?, Dr Wise explains the SFC’s settlement policy following the settlements of several disciplinary cases recently.  While the column has previously focused on educational messages on investing, this is the first time Dr Wise has talked to the public about the SFC’s regulatory thoughts.

Dr Wise points out that the SFC takes into account the public interest first and foremost in considering settlements.  For this reason, an offer of monetary payment, however large, is only acceptable in certain circumstances.  In administering disciplinary proceedings, including the conduct of settlement negotiations, the SFC carefully balances the interests of the market against the benefits and costs of further litigation and investigation costs. 

Dr Wise is a fictitious character.  He represents the collective wisdom and knowledge of market specialists and experts at the SFC.  Dr Wise, through his column, talks to investors about the key issues of investing.  Also, he explains in plain language various regulatory issues in the increasingly complex financial market.

Dr Wise’s Column has been published on the last Tuesday of every month since December 2003.  All current and previous issues are available on the SFC website under the “Advice to Investors” section.  Investors are welcome to send their feedback and questions to Dr Wise by e-mail at investor.info@hksfc.org.hk.

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Note:

1. News media are welcome to carry the column with acknowledgement of the source of information.