A Typical Day When the Regulator comes Knocking on your Door

Abstract

In Hong Kong, it is not uncommon for regulators to conduct unexpected raids at companies' offices. Are companies in Hong Kong well prepared to tackle "dawn raids" conducted by regulators? What are the key issues that companies need to be aware of when a regulator goes knocking on their door? In this article, we look at the typical things which regulators do when they arrive at a company's office to conduct a raid and provide a checklist of the issues which a company should consider in response. From issues such as the regulator's search powers (including the power to seize electronic devices such as computers and mobile phones) and search protocol to the company's rights to legal professional privilege and privilege against self-incrimination, the article aims to equip companies with some basic knowledge which hopefully will assist them to become fully geared when a regulator goes knocking on their door. We will also discuss a recent court case in which the Court confirmed that the Securities and Futures Commission ("SFC") has the power to seize electronic devices and may also issue a notice to require the provision of login names and passwords to email accounts and digital devices.