Tips On How To Handle An SFC Investigation

Investigations ("SFC investigations") by the Securities and Futures ("SFC") Enforcement Division are formal enquiries into possible wrongdoing. Key objectives when handling an SFC investigation are to persuade the SFC that there has been no wrongdoing, to lay out a vision of events that militates against the exercise of discretion to prosecute in the public interest and to create a record of events which, if prosecution does ensue, does not contain any unnecessary admissions of liability or guilt. Achieving these objectives requires good legal representation, a thorough understanding of the facts and, in the case of a company, the cooperation of affected employees. In this article, we provide context to SFC investigations and discuss how a person who is subject to an SFC investigation may achieve these objectives.