Hong Kong SFC Bans Taiping Securities Responsible Officer from Industry for 7 Months for Logging into 2 Clients Internet Trading Accounts to Place Trade Orders for Convenience & Lower Commission for Clients, Failed to Follow Taiping Securities Order Processes & Record Order Instructions from Clients
20th September 2023 | Hong Kong
The Hong Kong Securities & Futures Commission (SFC) has banned Taiping Securities (HK) former Responsible Officer (Lo Wai Ming) from the industry for 7 months (16/9/23 to 15/4/24) for logging into 2 clients internet trading accounts to place trade orders for convenience & lower commission for clients, failing to follow Taiping Securities (HK) order processes and record order instructions from the 2 clients. Hong Kong SFC: “The SFC found that Lo had, unbeknownst to TSCL (Taiping Securities (HK), logged into the respective internet trading accounts of the Clients and placed orders for them in accordance with their instructions (Order Placing Arrangements) for 72 trades (Trades). The Clients confirmed that they had provided Lo with their respective log in credentials and requested Lo to place the orders on their behalf either in person or by telephone before office hours. Pursuant to TSCL’s client order processing procedures applicable during the Relevant Period, staff members should input client orders into its broker supplied system for execution. Lo explained that he did not follow TSCL’s client order processing procedures but adopted the Order Placing Arrangements for the sake of the Clients’ convenience and to reduce their commission expenses, as TSCL charged a lower commission fee for orders placed by clients via the internet. Lo did not inform TSCL, and TSCL was not aware of the Order Placing Arrangements during the Relevant Period. Through the Order Placing Arrangements, the Trades in the Clients’ accounts were effectively disguised as if they had been placed by the Clients themselves. Lo’s conduct circumvented TSCL’s internal policies and prevented it from properly monitoring the operation of the Clients’ accounts.” See below for more info:
“ Hong Kong SFC Bans Taiping Securities Responsible Officer from Industry for 7 Months for Logging into 2 Clients Internet Trading Accounts to Place Trade Orders for Convenience & Lower Commission for Clients, Failed to Follow Taiping Securities Order Processes & Record Order Instructions from Clients “
Hong Kong SFC Bans Taiping Securities Responsible Officer from Industry for 7 Months for Logging into 2 Clients Internet Trading Accounts to Place Trade Orders for Convenience & Lower Commission for Clients
18th September 2023 – The Securities and Futures Commission (SFC) has prohibited Mr Lo Wai Ming, a former responsible officer (RO) of Taiping Securities (HK) Co Limited (TSCL), from re-entering the industry for seven months from 16 September 2023 to 15 April 2024 (Note 1). The disciplinary action follows an SFC investigation which found that between 2 January 2018 and 28 September 2018, Lo had, unbeknownst to TSCL, logged into two clients’ internet trading accounts and placed orders for them. As a result, trades in the clients’ accounts were effectively disguised as if they have been placed by the clients themselves. Lo had also failed to maintain proper records of the order instructions from the two clients. By doing so, his conduct circumvented TSCL’s internal policies and prevented it from properly monitoring the operation of the two clients’ accounts.
In deciding on the sanction, the SFC has taken into account all relevant circumstances, including the duration of Lo’s misconduct and his otherwise clean disciplinary record.
- Note: Lo was accredited to TSCL and approved to act as its RO for Type 1 (dealing in securities) regulated activity between 25 June 2008 and 23 April 2019. He is currently not licensed by the SFC.
- A copy of the Statement of Disciplinary Action is available on the SFC website
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