Hong Kong's Securities And Futures Commission Bans Ng Hongs For 10 Months

The Securities and Futures Commission (SFC) has banned Mr Ng Hongs, a former account executive of China Merchants Securities (HK) Co., Limited (CMSHK), from re-entering the industry for 10 months from 12 March 2016 to 11 January 2017 for breach of the SFC’s Code of Conduct (Notes 1 & 2).

The SFC found that Ng obtained a written authorization from his client which authorized him to conduct trades on a discretionary basis in the client’s account. He did not, however, obtain CMSHK’s management approval before entering into such arrangement with the client and effected transactions for the client on a discretionary basis between August 2010 and September 2011 without CMSHK’s knowledge.

The SFC considers that the client’s interests were prejudiced as Ng’s failure deprived the client from the firm’s protection on discretionary account. A written authorization which was signed by the client without the firm’s knowledge and approval did not offer the client any protection as the client’s securities account was not designated as a discretionary account by the firm and the operation of the client’s securities account could not be properly monitored and supervised by the firm.

Notes:

1. Ng 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 China Merchants Securities (HK) Co., Limited and China Merchants Futures (HK) Co., Limited from 5 August 2010 to 25 February 2013. Ng is currently not licensed by the SFC.
2. Paragraphs 7.1(c) and (d) of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.