The Court of Appeal has confirmed that the High Court has jurisdiction under RHC Order 11, r.1(1) to permit the Securities and Futures Commission (SFC) to serve a Writ in a Hong Kong regulatory action on defendants out of Hong Kong: SFC v Subotic [2022] HKCA 1909. 

Under the Securities and Futures Ordinance (Cap. 571) (SFO) s.213, the SFC may issue collective type Court proceedings against defendants alleged to have engaged in prohibited conduct in the Hong Kong financial markets (eg under SFO s.274, manipulative trading). Under s.213, the Court may grant various flexible remedies for the purposes of compensating Hong Kong investors alleged to have suffered harm by the alleged misconduct.

Unlike its overseas counterparts and more modern Hong Kong legislation in other areas eg competition law, Hong Kong’s Order 11 does not expressly permit service of SFC actions. However, the Court of Appeal confirmed that, despite its modern origins and form, a s.213 claim is an action “in tort” for Order 11 purposes.

Edward Alder, instructed by Minter Ellison, is acting for the US defendants in the litigation.