Hong Kong’s securities regulator has banned Chau Hang-Yu and Steve Chow Chun-Yin, both former employees of HSBC, from the industry for life following criminal convictions for fraud.
Chau and Chow, who were responsible for selling investment products at HSBC and knew one another at the material times, made false claims in 2012 and 2014 that certain customers had agreed to buy unit trust funds (UTFs).
They received sales commission after HSBC processed the subscription orders in the belief that they had sold the UTFs when they had not.
In addition, Chau referred her customers to Chow so that he could obtain more sales commission after she had reached her cap for receiving commission. Chow later handed Chau HK$100,000 ($12,894) in customer referral fees.
On February 23, 2016, Chau was sentenced to 12 months in prison after being convicted on two counts of fraud. Chow was sentenced to 18 months in prison after his conviction for two counts of fraud and one count of offering an advantage to an agent.
The Securities and Futures Commission (SFC) considers Chau and Chow not fit and proper persons to be licensed or registered to carry on regulated activities as a result of their convictions.
Chau (formerly known as Aixingero Chat Yung) and Chow had been engaged by HSBC to carry on type 1 (dealing in securities) and type 4 (advising on securities) regulated activities. Neither are currently registered with the Hong Kong Monetary Authority or licensed by the SFC.