Timothy Loh LLP Successfully Represents Pacific Sun, a Hedge Fund, Before Court of Final Appeal to Overturn Convictions for Breaches of the Securities and Futurs Ordinance

Our SFC Appellate Practice represented Pacific Sun Advisors (“Pacific Sun”) and its director in a precedent setting case which defined the scope and application of the professional investors exemption under section 103(3)(k) of the Securities and Futures Ordinance (“SFO”). Section 103(1) requires that every offer or invitation to the public to acquire or dispose of securities or to participate in a collective investment scheme be authorized by the Securities and Futures Commission (“SFC”).

We were retained following the convictions of Pacific Sun and its director secured by the SFC at the Hong Kong magistrate courts and Pacfic Sun’s unsuccessful appeal to the Court of First Instance. We appealed the convictions to the Court of Final Appeal (“CFA”), the highest court in Hong Kong, and successfully overturned them. In the process, our arguments re-defined the approach to the professional investors exemption.