HFMWeek Publishes Daniel Cohen Article on Hong Kong Court’s Cross-Border Cooperation Ruling

Akin Gump litigation partner Daniel Cohen has written the article “Hong Kong ruling supports cross-border cooperation” for HFMWeek, examining a landmark ruling by the Hong Kong Court of First Instance that rejected a judicial review application brought by a Securities and Futures Commission (SFC)-licensed investment manager. In addition to offering insight into the practice of cross-border collaboration between financial services and markets regulators, Cohen writes that the decision “also reinforces some important risk management issues for investors.”

The case in question, according to the article, involved “the way in which information obtained from the applicants in Hong Kong was transmitted by the SFC to the Financial Services Agency (FSA) and Securities and Exchange Surveillance Commission in Japan.” After learning of a suspicious transaction report, the SFC, Cohen writes, sought additional information about trading activity before eventually rejecting the applicants’ argument that the SFC had acted unlawfully. A constitutional challenge also failed.

The decision should serve as a reminder, Cohen writes, “that information gathering powers at the SFC’s disposal involve important differences.” Additionally, one should be sure to consider “the appropriateness of asserting the privilege against self-incrimination when faced with a notice issued by the SFC to produce information.”