A broker-dealer who pretended his wife was a client to create a false telephone order recording has been banned by Hong Kong’s securities regulator from re-entering the industry for three years.
Ma Tin Luk, formerly accredited to Phillip Securities (Hong Kong) and Phillip Commodities (HK), fabricated two recordings and provided false and misleading information to conceal the lack of records on a short-selling order he executed for a client in November 2009.
In its investigation, the Securities and Futures Commission (SFC) found that Ma had asked his wife to pretend to be his client; and informed the SFC that the two recordings were conversations between him and his client, knowing they were in fact with his wife.
Ma only admitted to the SFC that he had phoned his wife when Phillip Securities discovered that the phone number Ma called was the same number one that he frequently called.
As a result, the SFC has determined to ban Ma from re-entering the industry from April 24 this year to April 23, 2016.
It took into consideration that Ma’s misconduct was seriously dishonest; a deterrent message needed to be sent to the market that providing false and misleading information to the SFC is not acceptable; and Ma had no previous disciplinary record.
Ma was licenced as a representative under the Securities and Futures Ordinance to carry on type 1 (dealing in securities), type 2 (dealing in futures contracts) and type 4 (advising on securities) regulated activities.
He was accredited to Phillip Securities (Hong Kong) and Phillip Commodities (HK) between March 26, 2007, and January 1, 2011. He is not currently a licensed person.