Hong Kong SFC Fines Former Account Executive of Equity Broker KGI $10,000 for Failure to Keep Record of Order Instructions
Hong Kong’s Securities and Futures Commission (SFC) has fined a former account executive of equity broker KGI Asia $10,192 (HKD 80,000) for failing to keep proper records of order instructions from clients.
” Hong Kong SFC Fines Former Account Executive of Equity Broker KGI $10,000 for Failure to Keep Record of Order Instructions “
Between July 2015 to August 2015, Lau Ki Fung had received 156 order instructions of derivative warrants from 4 clients on his mobile phone and in meetings outside KGI’s office. However, he prepared written records for only 9 of the 156 orders. He also did not use use telephone recording system to record these order instructions, which is required by the Code of Conduct and KGI’s internal requirements.
In deciding the disciplinary action, the SFC took into account his remorse, acceptance of his failure and clean disciplinary record.
Paragraph 3.9 of the Code of Conduct requires a licensed person to use a telephone recording system to record order instructions which are received from clients through the telephone. The use of mobile phones for receiving client order instructions is strongly discouraged. However, where orders are accepted by mobile phones, staff members should immediately call back to their licensed person’s telephone recording system and record the time of receipt and the order details. The use of other formats (e.g. in writing by hand) to record details of clients’ order instructions and time of receipt should only be used if the licensed person’s telephone recording system cannot be accessed.