Hong Kong’s Securities and Futures Commission (SFC) has banned and fined two former employees of United Simsen Securities for insider dealing.
Lam Chun-Yin and Yeung Chok-Cheong traded ahead of and on the basis of non-public information about a client’s pending purchase of shares in Renhe Commercial Holdings. They also failed to take all reasonable steps to avoid conflicts of interest.
Lam, former responsible officer of United Simsen, has been banned from re-entering the industry for 36 months from August 10, 2016 to August 9, 2019. Yeung, Lam’s subordinate, may not re-enter the industry for 30 months from August 10, 2016 to February 9, 2019.
In addition, Lam and Yeung have been fined HK$111,000 ($14,311) and HK$51,830 respectively, which the profits each of them made from trading the Renhe shares on December 31, 2013.
United Simsen had been engaged by Pacific Plywood Holdings to provide corporate advisory services. Lam and Yeung were preparing a draft announcement for Pacific Plywood on its acquisition of 80 million Renhe shares on December 31, 2013.
In the morning of December 31, 2013, Lam and Yeung bought 1.2 million and 392,000 Renhe shares, respectively, before Pacific Plywood placed its order to buy 80 million Renhe shares. The two individuals sold their Renhe stock during and shortly after Pacific Plywood’s acquisition of the shares.
Neither Lam and Yeung had a previous disciplinary record with the SFC.
They were both licensed to carry on type 1 (dealing in securities) and type 6 (advising on corporate finance) regulated activities and were accredited to United Simsen until April 2014. Neither of them are currently licensed by the SFC.
United Simsen is now known as Huarong International Securities.