On 3 June 2019, the FCA published Decision Notices concerning Cathay International Holdings Limited, a Hong Kong-based premium listed company, and two of its directors, Mr Lee and Mr Siu. The FCA found that Cathay committed the following breaches:
reckless breach of FCA Listing Principle 1 for failing to take reasonable steps to monitor its expected financial performance for the year ended 31 December 2015 compared to market expectations;
reckless breach of Premium Listing Principle 6 and Disclosure and Transparency Rule 2.2.1R for failing to disclose to the market as soon as possible after 6 December 2015 a material change in its actual and expected performance for the year ended 31 December 2015 compared to market expectations; and
breach of Listing Principle 2 for failing to deal with the FCA in an open and co-operative manner during its investigation
The FCA found that Cathay's directors were knowingly concerned in the company's breaches. The FCA imposed fines of £411,000 on Cathay, £214,300 on Mr Lee and £40,200 on Mr Siu. The company has announced that the recipients are considering whether to refer the Decision Notices to the Upper Tribunal.
Links to the Decision Notices can be found on the FCA's website here
Catherine Callaghan QC acted for the FCA. Javan Herberg QC acted for Cathay and the two directors.