On 15 January 2016, our partners Mr. Eric Lui, Ms. Heidi Chui, associate Ms. Karman Fung and trainee solicitor Mr. Jensen Chang delivered a seminar on the Competition Ordinance (Cap. 619) at the Hong Kong branch of China Everbright Bank. Our team explained how the Ordinance, which came into force on 14 December 2015, may impact the banking industry.
In relation to the First Conduct Rule which covers agreements and concerted practices between undertakings, our speakers explained to the participants that common banking practices which were lawful in the past may now violate the law, in particular the exchange of strategic business information with other banks. In light of the suspension by the Hong Kong Association of Banks of certain sections of the Code of Banking Practice, our team analysed why they may potentially be caught by the First Conduct Rule as well as the possible effect of the suspension on the concerned banking services.
The application of the Second Conduct Rule to the banking industry was also addressed. Examples of the enforcement dimension of the Ordinance, including dawn raids, the leniency policy and actions bankers should take in order to avoid violation of competition law were given.
During the seminar, participants raised questions and engaged in enthusiastic discussions regarding exchange of information with competitors and powers of the Competition Commission.
Photograph of Mr. Lui (second from left), Ms. Chui (second from right), Ms. Fung (on the right), Mr. Chang (on the left), and Mr. Zachary Xin (in the middle), Head of Legal and Director, Hong Kong branch of China Everbright Bank
Contact persons: Mr. Eric Lui, Ms. Heidi Chui