The Securities and Futures Commission (SFC) has suspended Mr Cheung Man Chit, a former licensed representative of Emperor Securities Limited and Emperor Futures Limited (collectively, Emperor), for two years from 28 August 2021 to 27 August 2023 (Note 1).
The disciplinary action follows an SFC investigation which found that between June 2013 and February 2018, Cheung:
- submitted false client documents and information to Emperor, and stated in a client account opening document that he witnessed the client’s signature when in fact he had not done as claimed;
- transferred around $3.2 million client money through his personal and related bank accounts and inputted incorrect information in Emperor’s payment or deposit forms to facilitate the transfers; and
- used a client’s password to place trade orders in the client’s online trading account with Emperor.
The SFC considers that Cheung failed to act honestly, with due skill, care and diligence, and in the best interests of his clients. Cheung’s conduct was prejudicial to the interests of his clients and employers as it prevented Emperor from ensuring that the account opening document was properly signed by the client and client information was accurately recorded, adequately safeguarding client assets, and properly monitoring and supervising clients’ trading activities (Note 2).
The SFC also found that Cheung failed to inform the SFC and Emperor of his directorship and proprietorship of two companies that he owned (Note 3).
In deciding the sanction, the SFC took into account all relevant circumstances, including the duration of Cheung’s misconduct and his otherwise clean disciplinary record.
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Notes:
- Cheung was licensed under the Securities and Futures Ordinance (SFO) and was accredited to Emperor between 29 May 2012 and 6 March 2017 to carry on Type 1 (dealing in securities) and Type 2 (dealing in futures contracts) regulated activities. He was accredited to Freeman Securities Limited and Freeman Commodities Limited between 8 May 2017 and 7 June 2021 to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the SFO. He is currently not accredited to any licensed corporation.
- General Principles 1 and 2 of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
- Please refer to paragraphs 21 and 22 of the Statement of Disciplinary Action for the relevant regulatory requirements.
A copy of the Statement of Disciplinary Action is available on the SFC website
