Personal interest prevailing

Personal interest prevailing

Trades/ Industries:
Listed Companies
Banking
Areas of Concern:
Professional Ethics
Conflict of Interest
fade-up
container

Jackson is a corporate financier.  On one occasion, he leads a team to arrange the takeover of Good Industrial by Frontline Group through the acquisition of 50% of its shares.   Although Jackson is holding a substantial quantity of stocks of Good Industrial, he does not disclose the situation to his company. Finally, Jackson makes handsome gains from his own Good Industrial’s stocks due to the success of the takeover.

Case Analysis

Jackson breaks the *Codes of Conduct by concealing his personal interest in Good Industrial and continuing to participate in the takeover project. It appears that his advice to Frontline Group is not entirely objective as his interest in Good Industrial may affect his judgement.  To comply with the standard, Jackson should disclose the situation to his company and let his employer decide whether he should withdraw from the project.

*Remarks: Codes of Conduct refer to the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission, the Code of Conduct for Corporate Finance Adviser and the Fund Manager Code of Conduct.

Back to top

Request Service

Survey Questions
1. In which country or region are you currently located?
Hong Kong
Chinese Mainland
Other (please specify)
2. What type of organisation do you represent?
Listed company
Large private company
SME / start-up
NGO / non-profit
Public organisation
Chamber / trade association
Other (please specify)
3. What is the size of your organisation?
1 - 49 employees
50-99 employees
100 - 199 employees
200 or more employees
4. What is your staff level or position?
Executive / senior management
Middle management
Professional
Supervisory level
Frontline/Technical Staff
Other (please specify)

Thank you for your feedback.