Hong Kong Securities And Futures Commission: Court Convicts Unlicensed Fund Manager

The Eastern Magistrates’ Court today convicted Mr Yau Ka Fai for holding himself out as carrying on a business in asset management without a licence from the Securities and Futures Commission (SFC) (Notes 1 & 2).

Yau pleaded guilty and the case was adjourned to 16 January 2020 for sentencing.

The Court heard that between September 2011 and November 2015, Yau, who was not licensed by the SFC at the time, represented to investors that he was the manager of a fund known as Tai Chi Hedge Fund and received commission for his service.  The fund invested in, amongst other things, stocks and futures contracts.

The SFC reminds investors to check the SFC’s Public Register of Licensed Persons and Registered Institutions on the SFC’s website (www.sfc.hk) before investing to ensure that the parties they deal with are licensed.

Notes:

1. Asset management is a regulated activity under the Securities and Futures Ordinance (SFO).  Under section 114(1)(b) of the SFO, it is an offence to hold oneself out as carrying on a business in a regulated activity without a licence from the SFC.
2. Yau has never been licensed with the SFC in any capacity or in relation to any regulated activity.