Hong Kong SFC Suspends Former Emperor Securities Licensed Representative for 2 Years for Misconduct
3rd September 2021 | Hong Kong
The Hong Kong Securities and Futures Commission (SFC) has suspended former licensed representative Mr Cheung Man Chit of Emperor Securities and Emperor Futures for 2 years (28/8/21 to 27/8/23) for misconduct, including submitting false client documents, transferring $410,000 of clients money through personal & related accounts and using client password to place trade orders in the client’s online trading account. The incidents occurred between June 2013 to February 2018. In deciding the sanction, the Hong Kong SFC took into account all relevant circumstances, including the duration of Cheung’s misconduct and his otherwise clean disciplinary record.
“ Hong Kong SFC Suspends Former Emperor Securities Licensed Representative for 2 Years “
Hong Kong SFC:
The Hong Kong SFC considers that Mr Cheung Man Chit failed to act honestly, with due skill, care and diligence, and in the best interests of his clients. Mr Cheung Man Chit’s conduct was prejudicial to the interests of his clients and employers as it prevented Emperor from ensuring that the account opening document was properly signed by the client and client information was accurately recorded, adequately safeguarding client assets, and properly monitoring and supervising clients’ trading activities.
The SFC also found that Mr Cheung Man Chit failed to inform the SFC and Emperor of his directorship and proprietorship of two companies that he owned.
The disciplinary action follows an SFC investigation for the period June 2013 to February 2018:
- submitted false client documents and information to Emperor, and stated in a client account opening document that he witnessed the client’s signature when in fact he had not done as claimed;
- transferred around $3.2 million client money through his personal and related bank accounts and inputted incorrect information in Emperor’s payment or deposit forms to facilitate the transfers; and
- used a client’s password to place trade orders in the client’s online trading account with Emperor.
View Statement of Disciplinary Action: Hong Kong SFC
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The Securities and Futures Commission (SFC) is an independent statutory body set up in 1989 to regulate Hong Kong’s securities and futures markets.
We derive our investigative, remedial and disciplinary powers from the Securities and Futures Ordinance (SFO) and subsidiary legislation. Operationally independent of the Government of the Hong Kong Special Administrative Region, we are funded mainly by transaction levies and licensing fees.