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MPF intermediaries
MPFMPF Intermediaries ExaminationUnder the SFO, which offence carries a maximum fine of HK$5,000,000 (plus HK$100,000 a day if it continues) and 7 years' imprisonment?
Answer: carrying on a regulated activity business without being licensed or registered. Section 114(1) makes unlicensed or unregistered business in regulated activities an offence with these maximum penalties.Why not the others:• making a fraudulent misrepresentation to induce investment: Section 107(1) carries a maximum of HK$1,000,000 and 7 years.• failing to report knowledge or suspicion of money laundering: This carries a maximum of 3 months' imprisonment and a fine of HK$50,000.• issuing an unauthorised advertisement that invites the public to invest in a CIS: Section 103(1) carries a maximum of HK$500,000 (plus HK$20,000 a day) and 3 years.Watch out: Mixing up the three SFO penalty tiers: s 114 (HK$5m, 7 yrs), s 107 (HK$1m, 7 yrs), s 103 (HK$500,000, 3 yrs).Rule: SFO s 114(1): unlicensed regulated activity, max HK$5,000,000 plus HK$100,000 a day and 7 years.Source: IA Investment-linked Long Term Insurance Examination Study Notes, 2024 Edition (7th ed., Nov 2024; for exams from 17 Feb 2025), 5.3.2, p. 5/11
Mixing up the three SFO penalty tiers: s 114 (HK$5m, 7 yrs), s 107 (HK$1m, 7 yrs), s 103 (HK$500,000, 3 yrs).
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