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Case Studies
An offence committed notwithstanding incomplete corrupt transaction
Alan is a senior portfolio manager of a pension fund in a large asset management corporation. He is also a member of the company’s broker selection committee and has an influence on the proportion of business allocated to external brokers. Agnes is an account manager of a brokerage firm which, to Alan’s knowledge, charges a higher brokerage rate but offers a poor level of service. On one occasion, Agnes invites Alan to join her for a drink and eventually explains to him that she is prepared to rebate him if he can persuade other members in the selection committee to direct business to her. To get things moving, she proposes placing $100,000 into Alan’s bank account. Succumbing to the temptation, Alan gives Agnes his account number. This "under-the-table" arrangement is finally exposed and reported to the ICAC by a colleague of Alan. Both Alan and Agnes are arrested even before they execute the corruption deal.
Case Analysis
Alan breaks the *Codes of Conduct and Section 9 of the Prevention of Bribery Ordinance (POBO) as he agrees to abuse his official position as a member of the broker selection committee by persuading other members to offer business to Agnes and accepts rebate in return without permission from his employer. Likewise, Agnes also breaches the Codes of Conduct and the PBO for offering an illegal advantage to Alan. Although Alan hasn’t executed the "under-the-table" deal, both of them still commit a corruption offence. Under the law, a person will be found guilty even though the purpose of bribery has not been carried out.
*Remarks: Codes of Conduct refer to the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission, the Code of Conduct for Corporate Finance Adviser and the Fund Manager Code of Conduct.