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The Securities and Futures Commission (SFC) has banned Ms Michelle Ng Man Chow from re-entering the industry for life (Note 1).
The disciplinary action follows an SFC investigation which found that, between August and October 2011, Ng deposited a number of cheques into her own trading account and the trading account of a client that she received from another client for settling securities transactions. Ng’s action left the latter client’s account with a negative balance and penalty interest was charged.
In order to conceal her misconduct, Ng lied to the client saying the interest charges were a mistake when asked for an explanation for the interest charged. In addition, Ng sold some securities in the client’s account without authorization to reduce her margin ratio and to prevent margin calls being made to her.
Ng has compensated the affected client after she lodged a complaint with Ng’s employer and the SFC.
The SFC also found that Ng conducted transactions in the former client’s trading account on a discretionary basis without any written authorization from the client.
In deciding the penalty, the SFC took into account that misappropriation of client’s assets is a serious and dishonest act and Ng’s attempt to conceal it aggravated its seriousness. The SFC concluded that Ng is not a fit and proper person to be licensed.
Notes:
- Ng was licensed as a representative under the Securities and Futures Ordinance to carry on Type 1 (dealing in securities) regulated activity and was accredited to KGI Asia Limited between 3 August 2010 and 14 August 2012. Ng 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.
