Hong Kong’s Securities and Futures Commission (SFC) has banned a second former Sun Hung Kai staffer from re-entering the industry for three years to 2015.
The SFC announced yesterday that between 2010 and 2011 Esther Lee Ying Chih had operated discretionary accounts on behalf of 10 clients at Sun Hung Kai Financial (SHKF) without any prior written authorisation from them.
She had also effected unauthorised transactions in the accounts of two clients despite explicit verbal agreements not to do so; and failed to keep a proper record of trade order instructions and confirmations.
In banning Lee for three years to August 8, 2015, the SFC took into consideration the fact that SHKF had compensated the financial loss of one affected client with a sum of $870,000 which it is in the process of recovering from Lee.
She had been licensed to carry out type 1 (dealing in securities), type 2 (dealing in futures contracts), type 3 (leveraged foreign exchange trading) and type 4 (advising on securities) activities. All her licences lapsed in October 2011.
Just a few days ago, on August 6, the SFC announced it had banned Leung Kam Yu from re-entering the industry for three years to August 2, 2015.
Leung had been accredited with Sun Hung Kai Investment Services to carry on type 1 (dealing in securities) activities between June 13, 2005, and December 16, 2010. She is currently not licensed.
It found that between August and December 2010 Leung had effected transactions in a client account on a discretionary basis without obtaining written authorisation from the client.
She had conducted unauthorised transactions in the client’s account, although the client had instructed her to stop trading on the account.
She had also knowingly inserted incorrect information on the client’s background in the account opening forms, and failed to ensure suitability of the discretionary trades to a reasonable degree.
In reaching both of its decisions, the SFC says it took Lee’s and Leung’s clear disciplinary records into consideration.