UBS executive fined for negligence

Hong Kong's securities regulator has fined and reprimanded an employee of the Swiss bank for negligence in handling client trade orders.
UBS executive fined for negligence

Hong Kong's securities regulator has reprimanded UBS employee Winnie Pang Wai-Yan and fined her HK$120,000 ($15,500) for negligence in handling a client’s trade orders.

In December 2009 a client of the Swiss bank wanted to sell his shares in a stock to an identified buyer at agreed amounts and prices through manual cross trades. Instead of placing cross trades as initially instructed by the client, Pang coordinated with the buyer to conduct a series of on-exchange matched trades between 3 and 8 December 2009.

The Securities and Futures Commission (SFC) found that, in handling the client’s orders, Pang did not:

  • exercise sufficient care in making enquiries in relation to the relevant transactions to ascertain the client’s intention;
  • report the matter to UBS's compliance department; and
  • refrain from acting on the client’s instructions before she was satisfied that the orders and their execution did not affect the best interests of the integrity of the market.

The SFC considers that Pang’s failures called into question her fitness and properness as a registered person.

In deciding the disciplinary sanction, the regulator took into account:

  • Pang’s financial situation;
  • that Pang did not make any personal benefit out of the transactions in question;
  • that there is insufficient evidence to prove to the requisite standard that the matched trades were carried out with manipulative intent;
  • that the matched trades had minimal impact on the nominal price of the stock;
  • that Pang co-operated with the SFC in resolving the disciplinary action; and
  • that Pang has an otherwise clean disciplinary record with the SFC.

Pang has been registered as a relevant individual with the Hong Kong Monetary Authority and engaged by UBS to deal in securities since 20 February 2006.

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