Hong Kong's Securities And Futures Commission Bans Ma Yu Lung For Eight Years

The Securities and Futures Commission (SFC) has banned Mr Ma Yu Lung, a former representative of Sun Hung Kai Investment Services Limited (SHKIS), from re-entering the industry for eight years from 26 January 2017 to 25 January 2025 for breach of the Code of Conduct (Notes 1 & 2).

The SFC’s investigation found that on numerous occasions between September 2009 and February 2010, Ma:

• accepted order instructions from unknown and unauthorized individuals to trade securities listed on the Stock Exchange of Hong Kong, and colluded with SHKIS’ account holders to pretend the order instructions originated from them when this was not the case; 
• allowed execution of trades flowing from these order instructions in the securities trading accounts of others at SHKIS; and
• concealed the identities of those individuals who originally gave the relevant order instructions.

Ma’s conduct was dishonest and cast serious doubts on his fitness and properness to be a licensed person because as a SFC-licensed representative, he should be satisfied on reasonable grounds the identity of the person ultimately responsible for originating the instruction in relation to a transaction and should not effect a transaction unless the identity of the person originating the order is satisfied (Note 3).

In deciding the sanction, the SFC took into account all relevant circumstances, including the seriousness of Ma’s misconduct and that a strong deterrent message to the industry is necessary.

End

Notes:

1. Ma was licensed under the Securities and Futures Ordinance to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts) and Type 3 (leveraged foreign exchange trading) regulated activities, and was accredited to SHKIS, Sun Hung Kai Commodities Limited and Sun Hung Kai Forex Limited until June 2013.  Ma is currently not licensed by the SFC.
2. Code of Conduct for Persons Licensed by or Registered with the SFC
3. General Principle 1 (honesty) of the Code of Conduct provides that a licensed person should conduct business activities honestly, and in the best interests of its clients and integrity of the market.  Paragraph 5.4 of the Code of Conduct provides that a licensed person should be satisfied on reasonable grounds the identity of the person ultimately responsible for originating the instruction in relation to a transaction, and should not effect a transaction unless the identity of the person originating the order is satisfied.  Paragraph 7.1 of the Code of Conduct provides that a licensed person should not effect a transaction for a client unless before the transaction is effected the client, or a person designated in writing by the client, has specifically authorized the transaction.