Krypton Ltd. ("Krypton ) was incorporated as a public company 7 years ago. Recently, Krypton has identified a source of supply for a type of environmental friendly fuel for trucks and coaches. It is anticipated that the fuel will likely be adopted for use in all public and cargo transport vehicles. Krypton wished to raise an enormous amount of capital to develop this business. It planned to apply for listing on the Hong Kong Stock Exchange. Krypton needs to appoint a sponsor to assist in its application for listing. Franklin's nephew, Hugo is a Principal employed by a company advising on corporate finance and often acted as sponsor in IPOs ("the Company" ). However, one of the Principals of this company has resigned recently and the position is still vacant. Franklin wants to help his nephew and is persuading the directors of Krypton to engage the Company to be the sponsor. The directors of Krypton have expressed that they would only engage the Company if it fits all the eligibility criteria of a sponsor. Franklin's son Gabriel has completed a degree course in finance in a university. He wishes to engage in the securities industry by becoming a licensed representative. Gabriel is a heavy gambler and had repeated history of failure in payment of his credit card loans. He worked as a part-time cashier when he was a student. He had in several occasions taken money from his employer and was once discovered with the case being reported to the Police. He was not charged with theft just because his ex-employer was sick and could not become a witness for the Police. Advise the basic approval criteria that the Securities and Futures Commission would use to assess Gabriel. Comment on his chance of obtaining the approval and give reasons to support your answer. (600words) Krypton Ltd. ("Krypton ) was incorporated as a public company 7 years ago. Recently, Krypton has identified a source of supply for a type of environmental friendly fuel for trucks and coaches. It is anticipated that the fuel will likely be adopted for use in all public and cargo transport vehicles. Krypton wished to raise an enormous amount of capital to develop this business. It planned to apply for listing on the Hong Kong Stock Exchange. Krypton needs to appoint a sponsor to assist in its application for listing. Franklin's nephew, Hugo is a Principal employed by a company advising on corporate finance and often acted as sponsor in IPOs ("the Company" ). However, one of the Principals of this company has resigned recently and the position is still vacant. Franklin wants to help his nephew and is persuading the directors of Krypton to engage the Company to be the sponsor. The directors of Krypton have expressed that they would only engage the Company if it fits all the eligibility criteria of a sponsor. Franklin's son Gabriel has completed a degree course in finance in a university. He wishes to engage in the securities industry by becoming a licensed representative. Gabriel is a heavy gambler and had repeated history of failure in payment of his credit card loans. He worked as a part-time cashier when he was a student. He had in several occasions taken money from his employer and was once discovered with the case being reported to the Police. He was not charged with theft just because his ex-employer was sick and could not become a witness for the Police. Advise the basic approval criteria that the Securities and Futures Commission would use to assess Gabriel. Comment on his chance of obtaining the approval and give reasons to support your answer. (600words)
