The latest edition of the Enforcement Reporter published by the Hong Kong Securities and Futures Commission (SFC) reports that the latter has recently reached two other agreements on Lehman Brothers (LB)-related products, involving repurchase offers totaling approximately $1.489 billion. To date, the SFC has reached agreements with 25 distributors and non-distributors of such products.

The SFC's approach in resolving LB-related complaints has paved the way for the return of the collateral of LB Minibonds. Using a top-down investigation strategy, a resolution was reached with 16 distributing banks requiring them to set up a fighting fund and thus enabling the receivers to take all necessary actions to recover the collateral.

The Reporter also gives an account of how recent decisions by the courts and the Securities and Futures Appeals Tribunal upheld the SFC's further action against market manipulators. In one of the cases, a broker was jailed for executing a client's manipulative order instructions.

This issue also reports a recent development regarding the seeking of orders to disqualify listed company directors. For the first time, an alternate non-executive director has been disqualified for misconduct. In addition, the SFC has obtained an injunction to freeze suspected insider dealing proceeds amounting to nearly $400 million.

The Enforcement Reporter is a newsletter that highlights key enforcement outcomes and issues. It is available on the SFC website under "Speeches, Publications & Consultations" - "Publications."

The public are invited to subscribe to the Enforcement Reporter by registering for the Update Alert service on the SFC website. They will then be notified by email to retrieve the publication.