Release Date: 25th July 2019
To access the original FCA document, click here.
Summary
The Financial Conduct Authority (FCA) has issued final notices against Cathay International Holdings Limited, its CEO Jin-Yi Lee, and its Finance Director Eric Siu for significant regulatory failings. The firm and the individuals chose not to refer the matter to the Upper Tribunal, solidifying the FCA’s decision.
Cathay International Holdings Limited, along with Mr Lee and Mr Siu, was found to have breached regulatory standards due to inadequate financial controls and poor corporate governance. These failings undermined the integrity of the financial market. Specifically, the executives failed to ensure accurate financial information and proper reporting procedures, resulting in substantial risks to investors.
The FCA’s investigation revealed that Cathay, under the leadership of Mr Lee and Mr Siu, did not uphold appropriate corporate governance standards, leading to a lack of transparency and integrity in financial reporting. This misconduct involved failing to disclose accurate financial information, thereby violating their regulatory duties.
Key Takeaways for Other Firms:
- Maintain Accurate Financial Reporting: Ensure all financial disclosures are accurate and complete to uphold market integrity.
- Strengthen Corporate Governance: Implement robust governance frameworks to oversee corporate activities effectively.
- Ensure Transparency: Be transparent with investors and regulators regarding the company’s financial status and operations.
- Uphold Integrity: Senior executives must act with integrity, ensuring their actions do not compromise the firm or the market.
- Implement Robust Controls: Establish and maintain effective controls to manage and monitor financial reporting and corporate governance processes.
In conclusion, the FCA’s final notices against Cathay International Holdings Limited, its CEO, and its Finance Director highlight the critical importance of maintaining high standards in financial reporting and corporate governance. Firms and their senior management must prioritise transparency, accuracy, and integrity to protect investors and maintain market confidence.
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