Hong Kong's Securities And Futures Commission Bans Andy Pau Chin Hung For 10 Years

The Securities and Futures Commission (SFC) has prohibited Mr Andy Pau Chin Hung from re-entering the industry for 10 years from 7 May 2013 to 6 May 2023 (Note 1).

The disciplinary action follows the SFC’s investigation which revealed that Pau had:

assisted a third party to open three nominee securities trading accounts for the purpose of disposing of certain shares of a listed company;
facilitated the disposal of these shares and, in return, accepted via the securities trading accounts under the name of his mother, his sister and his own which were not disclosed to his employer, a pecuniary advantage from the third party;
maintained three secret accounts under his name for a period of almost three years;
caused his mother and sister to avoid disclosing to his employer in their account opening forms that they are persons related to its staff member; and
refrained from disclosing to his employer that his mother and sister are persons related to him in a staff declaration form.

The SFC is of the view that Pau is not a fit and proper person to be licensed and he should be prohibited from the industry for a lengthy period because his various failures are of a serious nature.

In determining the penalty, the SFC took into account the surrendering of the pecuniary advantage obtained by Pau as well as his clean disciplinary record.

Pau had applied to the Securities and Futures Appeals Tribunal for a review of the SFC’s decision but withdrew the application yesterday. Hence the SFC’s decision to prohibit him from re-entering the industry now takes effect.

Notes:

Pau was licensed as a representative under the Securities and Futures Ordinance to carry on Type 1 (dealing in securities) and Type 2 (dealing in futures contracts) regulated activities. At the material time, he was accredited to KGI Asia Limited and KGI Futures (Hong Kong) limited. Pau’s licence has lapsed on 11 May 2011 and he is currently not a licensed person.
A copy of the Statement of Disciplinary Action in relation to the matter is available on the SFC website.