The Securities and Futures Commission (SFC) has banned Ms Katherina Lo Ka Shun from re-entering the industry for two years from 24 February 2015 to 23 February 2017 (Note 1).
The SFC found that Lo sold 30 million shares in Grand Peace Holdings Limited (Grand Peace) held by her and her daughter on a pre-arranged basis. The transaction was executed on market at prices which Lo knew that they were not the price she privately agreed with the purchaser. The actual terms Lo agreed to dispose the shares included a cash discount payable to the purchaser (Note 2).
There was no reasonable explanation for the payment of the cash discount and for such a transaction being executed on-market. On-market transactions should reflect what has actually been agreed between the parties.
The SFC considers this transaction casts considerable doubt on Lo’s fitness and properness to be a licensed person.
Notes:
- Lo was licensed under the Securities and Futures Ordinance to carry on Type 1 (dealing in securities) and Type 2 (dealing in futures contracts) regulated activities and was accredited to Quam Securities Company Limited from 21 October 2010 to 1 January 2014. Lo is currently not a licensed person.
- Grand Peace was formerly known as FAVA International Holdings Limited.
A copy of the Statement of Disciplinary Action is available on the SFC website
