Hong Kong regulator fines CES Capital International (Hong Kong)

Hong Kong's Securities and Futures Commission reprimanded and fined CES Capital International (Hong Kong) Co. Ltd. HK$3.2 million over its failure to carry out duties as an investment manager of two funds between February 2015 and July 2017.

The regulator found that the company did not conduct sufficient due diligence and monitoring of the private funds' underlying investments or undertake satisfactory risk management measures to identify, quantify and manage the risks exposed to the funds, according to a June 27 release.

In addition, CES Capital International (Hong Kong) failed to keep a proper audit trail of the due diligence and monitoring allegedly performed on the funds and their underlying investments.

CES Capital International (Hong Kong) cooperated with the Securities and Futures Commission to resolves the regulator's concerns.