Hong Kong’s securities regulator has banned Chan Hau-Wing from the industry for two years for conducting unauthorised trades in a client’s account and acting contrary to the internal policy of Yue Xiu Futures Company.
The Securities and Futures Commission (SFC) found that on February 8, 2014, Chan was given a client order to buy 13 crude oil futures contracts, but he mistakenly placed a sell order.
Instead of reporting the error to the management of Yue Xiu Futures in accordance with company policy, Chan sought to reduce the loss by trading without authorisation from the client.
Chan did not report the matter to Yue Xiu Futures until the afternoon of February 10, 2014, after the client had made enquiries about the trades conducted in its account.
Chan’s conduct cast doubt on his fitness and properness to be a licensed person, said the SFC. He has been banned from re-entering the industry from July 13, 2016 to July 13, 2018.
In deciding the sanction, the regulator took into account all relevant circumstances, including that Chan had no previous disciplinary record with the SFC. Yue Xiu Futures has compensated the affected client.
Chan was licensed to deal in futures contracts (type 2 activity) and was accredited to Yue Xiu Futures until March 2014. He is currently not licensed by the SFC nor registered with the Hong Kong Monetary Authority.