Hong Kong CPA Reprimanded for Unlawful Short Selling of a Listed Company's Shares

The Hong Kong Institute of Certified Public Accountants has reprimanded Yau Ka Yi for her failure or neglect to observe, maintain or otherwise apply a professional standard issued by the HKICPA.

Yau has been ordered to pay a penalty of HK$3,000 (US$387) to the HKICPA. In addition, Yau has to pay the costs of the disciplinary proceedings amounting to HK$23,708 (US$3,000).

In April 2012, Yau was fined by the Magistrate's Court for unlawful short selling of shares of a listed company, contrary to the Securities and Futures Ordinance.

Yau notified the HKICPA of the conviction in accordance with her membership obligations.

After considering the information available, the HKICPA lodged a complaint against Yau under section 34(1)(a)(vi) of the Professional Accountants Ordinance.

Yau admitted the complaint against her.

The Disciplinary Committee found that Yau failed or neglected to observe, maintain or otherwise apply the fundamental principle of "Professional Behavior" set out in section 100.4(e) of the Institute's Code of Ethics for Professional Accountants.

Having taken into account the circumstances of the case, the Disciplinary Committee made the above order against Yau under section 35(1) of the ordinance.

Under the ordinance, if Yau is aggrieved by the order, she may give notice of an appeal to the Court of Appeal within 30 days after she is served the order.

A CPA who feels aggrieved by an order made by a Disciplinary Committee may appeal to the Court of Appeal, which may confirm, vary or reverse the order.


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