CPTEnglishIntermediate· Financial Compliance

Market Misconduct and Improper Trading Practices

Navigating Regulatory Requirements and Preventing Market Misconduct in Hong Kong

Legal & Compliance 1h 30 lessons

What you'll learn

Identify the six primary categories of market misconduct under the Securities and Futures Ordinance
Explain the legal distinctions between civil proceedings in the Market Misconduct Tribunal and criminal prosecutions
Define inside information and recognize the regulatory obligations of connected persons
Recognize red flags and patterns indicative of false trading, wash trades, and price manipulation
Apply best practices for managing information flow through Chinese walls and effective internal controls
Analyze the potential disciplinary and legal consequences of unethical trading conduct for firms and individuals
Understand the importance of escalation procedures when encountering suspicious client instructions

About this course

This CPT course provides a structured examination of market misconduct and improper trading practices within the Hong Kong financial services sector. As market integrity remains a primary focus of the Securities and Futures Commission (SFC), understanding the legal and regulatory expectations is essential for all licensed and registered persons. The curriculum focuses on maintaining investor confidence and ensuring that participants operate within the framework of the Securities and Futures Ordinance, which governs the conduct of market intermediaries when dealing in securities, futures contracts, and related products.

Who should attend

Licensed Representatives
Responsible Officers
Compliance and Risk Management Professionals
Institutional Traders and Dealers
Asset and Fund Managers
Research Analysts
Senior Management and Board Directors

Key topics covered

Regulatory Framework and Enforcement

Structure of the Securities and Futures Ordinance
Civil vs. Criminal enforcement regimes
The functions of the Market Misconduct Tribunal
Sanctions and disciplinary consequences for misconduct
Private civil claims and investor compensation

Statutory Market Misconduct

Insider dealing and materiality of inside information
False trading and wash trade detection
Price rigging and market manipulation
Prohibited transactions and false information dissemination
Fraud and deception in financial transactions

Operational Integrity and Controls

Management of information barriers and Chinese walls
Preventing improper practices like front-running and churning
Control of unauthorized trading and third-party instructions
Identifying red flags in client orders
Escalation protocols and incident documentation

How this course satisfies CPT

This course covers Financial Compliance topics recognised by the SFC as eligible for CPT. Upon completion, you'll earn approximately 1 CPT hours and receive a certificate of completion for your training records. The course includes quizzes to verify your understanding, satisfying the SFC's requirement that online learning includes an independent assessment and maintains a reliable audit trail.

Learn more about CPT requirements

Curriculum · 30 lessons

1:02:03.0 of content

1.
Understanding Market Misconduct and Improper Trading Practices
FREE
2:06.0
2.
Identifying Target Participants for Market Conduct Training
FREE
0:24
3.
Core Learning Objectives for Market Misconduct Prevention
FREE
2:04
4.
The Importance of Market Conduct and Investor Confidence
2:08
5.
Regulatory Frameworks for Hong Kong Securities and Futures
2:01
6.
Quiz: Understanding Market Misconduct and Improper Trading Practices – Regulatory Frameworks for Hong Kong Securities and Futures
QUIZ
5 questions · requires lessons
7.
Navigating the Dual Civil and Criminal Enforcement Regime
1:57
8.
Role and Functions of the Market Misconduct Tribunal
1:55
9.
Overview of the Six Types of Market Misconduct
2:09
10.
Insider Dealing Core Principles and Legal Prohibitions
1:59
11.
Defining Inside Information and Its Materiality Thresholds
2:11
12.
Quiz: Navigating the Dual Civil and Criminal Enforcement Regime – Defining Inside Information and Its Materiality Thresholds
QUIZ
5 questions · requires lessons
13.
Connected Persons and Internal Information Flow Management
2:13
14.
Insider Dealing Defences and Corporate Control Frameworks
1:51
15.
Detecting False Trading and Wash Trade Patterns
3:48
16.
Identifying Price Rigging and Stock Market Manipulation
4:00
17.
Managing Risks of False or Misleading Information Disclosure
2:08
18.
Quiz: Connected Persons and Internal Information Flow Management – Managing Risks of False or Misleading Information Disclosure
QUIZ
5 questions · requires lessons
19.
Prohibited Transactions and Associated Disclosure Requirements
2:00
20.
Addressing Fraud, Deception, and Cross Border Misconduct
4:18
21.
Safe Harbour Rules and Price Stabilisation Requirements
2:05
22.
Legal Consequences and Sanctions for Market Misconduct
2:35
23.
Civil Claims and Investor Compensation for Misconduct
1:24
24.
Quiz: Prohibited Transactions and Associated Disclosure Requirements – Civil Claims and Investor Compensation for Misconduct
QUIZ
5 questions · requires lessons
25.
Regulatory Restrictions on Unsolicited Calls and Cold Calling
2:04
26.
Identifying Boiler Rooms and High Pressure Selling Tactics
2:00
27.
Overview of Improper Trading Practices and Conduct Standards
2:11
28.
Preventing Churning, Front Running, and Rat Trading
2:01
29.
Controlling Unauthorized Trading and Third Party Instructions
2:05
30.
Quiz: Regulatory Restrictions on Unsolicited Calls and Cold Calling – Controlling Unauthorized Trading and Third Party Instructions
QUIZ
5 questions · requires lessons
31.
Recognizing Red Flags in Client Orders and Trading
1:12
32.
Best Practices for Escalation and Incident Documentation
0:55
33.
Practical Scenario Analysis for Suspicious Trading Activity
2:06
34.
Summary of Essential Internal Controls and Governance
0:22
35.
Key Takeaways for Maintaining Market Integrity and Compliance
1:51
36.
Quiz: Recognizing Red Flags in Client Orders and Trading – Key Takeaways for Maintaining Market Integrity and Compliance
QUIZ
5 questions · requires lessons

Requirements

Basic understanding of the Hong Kong financial services regulatory environment
Familiarity with standard trading and client-facing operational workflows
Professional interest in market compliance, risk management, or legal affairs
A foundational grasp of the Securities and Futures Ordinance is recommended

Certificate of Completion

Complete this course to earn a verifiable Certificate of Completion for your CPT training record. Here's how:

1Watch all the lessons — work through every lesson in the curriculum. Each completed lesson brings your progress closer to 100%.
2Pass all the quizzes — score 70% or higher in each quiz within the course. Quizzes are part of the curriculum and must be passed to finish.
3Download your certificate — once you reach 100% progress, download a personalised Certificate of Completion showing your name, the CPT hours earned, and your quiz score.

Sample certificate: