Hong Kong Securities And Futures Commission Suspends Shiu Yau Wah For Five Months

The Securities and Futures Commission (SFC) has suspended Mr Shiu Yau Wah, an account executive at RHB Securities Hong Kong Limited (RHBSHK), for five months from 24 January 2020 to 23 June 2020 (Note 1).

The disciplinary action follows an SFC investigation which found that Shiu conducted trades involving over $1.62 billion worth of shares for a client account on a discretionary basis for almost two years between 2014 and 2016 without obtaining the client's written authorization.  He also failed to comply with the policies and procedures of RHBSHK in relation to discretionary accounts.

In doing so, Shiu breached the Code of Conduct and is not a fit and proper person to remain licensed (Notes 2 to 4).

In deciding on the disciplinary sanction, the SFC took into account all relevant circumstances, including Shiu's admission of trading discretionarily for the client's account since it was first opened in 2014.

Notes:

1. Shiu is licensed under the Securities and Futures Ordinance to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts) and Type 4 (advising on securities) regulated activities.
2. Code of Conduct for Persons Licensed by or Registered with the SFC.
3. Among others, paragraph 7.1(a) provides that a licensed person should not effect a transaction unless before the transaction is effected the client has specifically authorized the transaction, or authorized in writing for the licensed person to effect transactions for the client within the client's specific authorization.  Further, paragraphs 7.1(c) and (d) require a licensed person to designate such accounts as "discretionary accounts" and senior management to approve the opening of discretionary accounts.
4. General Principle 2 of the Code of Conduct provides that a licensed person should act with due skill, care and diligence, in the best interests of clients and integrity of the market when carrying on business in regulated activities.