Paper 1 Part 9: Market Misconduct & Improper Trading Practices
HKSI LE Paper 1 · Regulatory Framework of the Securities & Futures Market · Part 9 · with answers and explanations
These 2 questions are all drawn from HKSI LE Paper 1 Part 9 “Market Misconduct & Improper Trading Practices” and are identical to the free preview a non-paying app user sees (the first 2 questions by id). Tap an option to answer and instantly see the explanation. The full app covers 31 questions in this part.
Under section 284 of the Securities and Futures Ordinance, what is the legal consequence when a person is identified as having engaged in market misconduct by reference to certain conduct?
Explanation: Section 284 deems such a person to have contravened the relevant provisions of the Part. This deeming provision is the bridge enabling further civil consequences such as damages claims.
A is determined by the MMT under section 252(3)(b) to have engaged in insider dealing. Investor B then brings a civil action under section 281 for pecuniary loss. Under section 281, what is the evidential status of the MMT determination in that action?
Explanation: Section 281 makes an MMT determination under s.252(3)(b) admissible in civil actions so long as it subsists. This greatly assists civil claimants who would otherwise have to re-prove the market misconduct.
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