Hong Kong's Securities And Futures Commission Bans Yuen Siu Lun For Seven Years

The Securities and Futures Commission (SFC) has banned Mr Yuen Siu Lun, a former responsible officer of Bright Smart Forex Limited (BS Forex) and head of the bullion operations of Bright Smart Global Bullion Limited (BS Bullion), from re-entering the industry for seven years from 24 March 2016 to 23 March 2023 for abusing the access right granted to him and making order amendments to bullion contracts as a means of obtaining a personal financial benefit (Note 1).

The disciplinary action follows an investigation by the SFC which found that, from April to October 2014, Yuen amended the data of approximately 300 bullion transactions in the accounts of seven clients even though there were no genuine error trades which called for amendment.  Such amendments, which were made without the knowledge and approval of Yuen’s ex-employer, benefited certain clients at the expense of BS Bullion.  Yuen caused a total loss of approximately $1.26 million to BS Bullion which comprised of profits and rebates arising out of all the orders placed in the accounts of the relevant clients.

According to an oral agreement with the clients, Yuen received rebate for each completed trade and gained a personal financial benefit in a total sum of approximately $180,000.  Although the SFC does not regulate gold bullion business, it considers that Yuen is not a fit and proper person to remain licensed under the Securities and Futures Ordinance (SFO) (Note 2).

Notes:

1. Yuen was licensed under the SFO to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contract), Type 3 (leveraged foreign exchange trading) and Type 9 (asset management) regulated activities.  Apart from BS Forex, he was also accredited to Bright Smart Securities International (H.K.) Limited, Bright Smart Futures & Commodities Company Limited and Bright Smart Asset Management Limited from 22 September 2014 to 9 October 2014.  Yuen is currently not licensed by the SFC.
2. Section 129 of the SFO sets out the criteria which the SFC must have regard to when considering whether a person is fit and proper to be licensed/registered.