- employ any device, scheme or artifice with intent
to defraud or deceive; or
- engage in any act, practice or course of business
which is fraudulent or deceptive, or would operate as
a fraud or deception.
DISCLOSURE OF FALSE OR MISLEADING INFORMATION INDUCING
OTHERS TO ENTER LEVERAGED FOREIGN EXCHANGE CONTRACTS (Section
301)
A person shall not, in Hong Kong or elsewhere, disclose,
circulate or disseminate, or authorise or be concerned in
the disclosure, circulation or dissemination of, information
that is likely to induce another person to enter into a
leveraged foreign exchange contract in Hong Kong, if:
- the information is false or misleading as to a material
fact or through the omission of a material fact; and
- the person knows that, or is reckless as to whether,
the information is false or misleading as to a material
fact or through the omission of a material fact.
This prohibits the same conduct in relation to leveraged
foreign exchange contracts as is outlawed in respect of
securities and futures transactions under Section 298. Section
301 also provides the same narrowly drafted defences as
that section for those who passively disseminate information
received from others such as printers, internet website
operators and broadcasters.
FALSELY REPRESENTING DEALINGS IN FUTURES CONTRACTS
ON BEHALF OF OTHERS (Section 302)
A person shall not represent to another person that he has
on behalf of the other person dealt in, or facilitated or
arranged for any dealing in, a futures contract traded on
an exchange or through an ATS in Hong Kong (or a contract
or other instrument substantially resembling a futures contract
in accordance with the rules of a futures market outside
Hong Kong), if he has not in fact done so and he knows that,
or is reckless as to whether, he has not done so.
