A joint operation between the SFC and ICAC, codenamed 'Fuse', resulted in the arrest of eight individuals, including senior executives of licensed securities firms and a hedge fund management firm. The investigation focused on insider dealing and corruption involving confidential information and bribes, with suspected profits of around $315 million from short selling and short equity swaps. The operation was part of a Memorandum of Understanding between the two agencies.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On March 10 and 11, 2026, a collaborative operation known as 'Fuse' was conducted by the Securities and Futures Commission ("SFC") and the Independent Commission Against Corruption ("ICAC"). The operation, which began on March 12, 2026, involved the search of 14 locations, including the offices of licensed corporations and the residences of the arrested individuals. A total of six men and two women, aged between 35 and 60, were arrested.
The individuals targeted included senior executives from two licensed securities firms and a licensed hedge fund management firm, as well as a middleman. It is suspected that these executives received bribes worth over $4 million from the owner of the hedge fund management firm in exchange for disclosing confidential information about share placements of Hong Kong-listed companies before such information was made public. The hedge fund management firm allegedly benefited to the tune of $315 million by establishing short positions in the relevant stocks.
The joint operation stemmed from the SFC's investigation into suspected insider trading activities, which unearthed potential corruption. The case was subsequently referred to the ICAC for further investigation into suspected corruption, while the SFC continued to focus on insider trading and other misconduct under the Securities and Futures Ordinance. Given the ongoing nature of the investigation, both the SFC and ICAC have refrained from providing further comments. The operation was carried out under the provisions of the Memorandum of Understanding signed between the SFC and the ICAC.
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