We have been involved in developing Expert evidence for many market misconduct cases having been appointed both by the Regulators and by Defending Parties.  

Market misconduct is a collective term that includes offences like insider dealing, and price rigging or  stock market manipulation such as creating a false or misleading price in the market. 

We have also covered the disclosure of false or misleading information about securities or futures, the disclosure of information about prohibited transactions and a failure of a duty to act to prevent market misconduct.  More recently, in Hong Kong, London and Singapore, attention has focused upon the failure to make prompt and proper disclosure of unpublished price sensitive information, especially by listed companies.

These activities require an increasing amount of cross-border experience.  For instance, the speed of transfer of global information has heightened the potential for cross-market manipulation activities between the stock and the futures markets.  The analyses of these requires Expert Witnesses to be market professionals who have served in several jurisdictions for lengthy periods.

In Hong Kong, market misconduct offences are usually investigated by the Securities and Futures Commission, while in Singapore they are investigated jointly by both the Monetary Authority and the Police Force.

It is best to appoint a Financial Expert as early as a need is recognised, either as an independent Expert  or as an adviser. It gives time for the Expert to filter the evidence and review it. In some cases we have been able to shorten a case by closing particular routes of enquiry early in the proceedings – purely by illustrating standard market practice.

Some reviews on market misconduct and expert evidence follow:

 HK SFC White Paper (2003) on fair markets: here

Summary of market misconduct by Charlton’s Law: here

HK SFC Guidelines on Insider Trading: here

Hong Kong Securities and Futures Ordinance: here

Singapore Supreme Court: Rules of Court 2006 Rev. Ed.

Singapore High Court Note to Experts: Note to Experts – Form 58

Other common law jurisdictions like Australia and the UK work to similar principles.

 

<<  Banking/Client Disputes         Loan, Credit and Interest Disputes >>

About Richard

Richard Harris is a pioneer of the Asian Investment Management markets, with nearly 40 years experience. It is 46 years since he first arrived in Asia, within which he has 16 years in Europe. He has global multi-cultural contacts and a long-term financial professional… Learn More

Search
What People Say…

“He is well versed in financial markets and regulation and a strong presenter and communicator of complex issues.”

– Simon Potter, CEO BoxRED BSP

“Richard has excellent insights into the markets and future trends. A true expert in his field.”

– Steven Freeland, Professor of International Law, Western Sydney University

“(Richard has a) discerning eye for other people’s gifts and talents… and in empowering them to perform at the highest level”

– Nicholas Appel, Principal, Global Metal Sources

“He is a dynamic leader and business builder; held in high regard by his peers.”

– Mark Mullan, Principal Origin8, San Francisco

“He is authoritative, articulate – and has a nice turn of phrase!”

– Bryan Curis, ex Head RTHK English; Bloomberg Radio Asia

“A man of great integrity with a wide network of contacts in Asia.”

– Chris Rollason, MD Stratagem Associates, Asia

“The Expert evidence came from Mr Richard Harris, who was both expert and independent”

– Mr Justic Coomaraswamy – Suit 322 of 2013 Singapore High Court. Public Document

“Richard is one of the most extensively experienced executives in asset and wealth management in Asia”

– Danny Howell, Managing Director, Head of Offshore Wealth