Hong Kong Securities And Futures Commission Bans Tong Ho Yin For Nine Years And Fines Him $350,000

The Securities and Futures Commission (SFC) has prohibited Mr Tong Ho Yin, a former responsible officer (RO) of HF Asset Management Limited (HFAM), from returning to the industry for nine years from 16 July 2025 to 15 July 2034. The SFC also fined Tong $350,000 (Notes 1 to 3).

The SFC’s investigation revealed that during Tong’s tenure as RO, HFAM failed to act in the best interests of a fund under its management and to properly manage conflicts of interest when entering into loan and stock lending agreements for the fund on three separate occasions between May 2017 and December 2018.

HFAM’s misconduct was evident in its repeated failures regarding these arrangements, all of which ultimately defaulted. These failures culminated in significant financial losses of $25.6 million for the fund amounting to 86% of its net asset value.

The SFC considers all of HFAM’s recurrent failures were attributable to Tong’s failure to discharge his duties as an RO and a member of the senior management of HFAM.

In deciding the sanction, the SFC has taken into account all relevant circumstances, including:

• the severity and recurring nature of HFAM’s and Tong’s misconduct;
• the importance of sending a strong deterrent message to the industry that the SFC will not tolerate substandard conduct in fund management practices;
• Tong’s otherwise clean disciplinary record; and
• Tong’s financial situation (Note 4).

Notes:

1. Tong was accredited to HFAM and approved to act as its RO for Type 9 regulated activity between 27 August 2014 and 31 January 2019. Tong is currently not licensed by the SFC.
2. On 7 October 2021, the SFC issued a restriction notice to HFAM, prohibiting it from carrying on any regulated activities. Please see the SFC’s press release dated 7 October 2021.
3. HFAM subsequently ceased business effective from 4 August 2022. Its licence with the SFC was revoked on 7 July 2023.
4. But for Tong’s financial position, the SFC would have imposed a $700,000 fine against him.