After taking into account all relevant circumstances, the SFC has fined Optimas Capital $1.05 million over short position reporting failures.
April 15, 2021 | AtoZ Markets – The Hong Kong’s Securities and Futures Commission (SFC) has reprimanded Optimas Capital Limited (Optimas) and fined it HK$1.05 million over failures to ensure short position reports (SPRs) for a collective investment scheme (CIS) under its management were accurate and compliant with the requirements under the Securities and Futures (Short Position Reporting) Rules.
An SFC investigation following a self-report by Optimas found that a total of 350 reportable short positions held by the CIS had been omitted in 56 SPRs prepared and submitted by Optimas to the SFC between June 23, 2017 and July 9, 2018.
The errors found in the SPRs prepared by Optimas occurred due to a programming mistake in a script developed by its operations manager at the material time. The script in question was created to automate the process of identifying short positions held by the CIS in order to filter out those that were reportable.
However, Optimas failed to detect the programming mistake promptly due to inadequate supervision and review over the work of its then operations manager.
The Hong Kong regulator considers that Optimas was incompetent in ensuring that the SPRs it prepared would be accurate and compliant with the SPR Rules.
In deciding the sanction, the SFC took into account all relevant circumstances, including Optimas’ prompt remedial actions and cooperation with the SFC in resolving the SFC’s concerns and its otherwise clean disciplinary record.
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