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The Eastern Magistrates’ Court today convicted Mr Chan Chi Kit of unlicensed dealing in securities in a prosecution brought by the Securities and Futures Commission (SFC) (Note 1).
Chan pleaded guilty and was fined $8,000 and ordered to pay the SFC’s investigation costs.
The Court heard that Chan carried on a business and also held himself out as carrying on a business in dealing in securities in the name of Prime Ocean Holdings Limited (Prime Ocean) during or around the period between 19 April 2013 and 10 October 2013 by referring clients to TYG Capital Management to subscribe for TYG Capital Fund in return for commission when neither Prime Ocean nor himself were licensed by the SFC (Notes 2 & 3).
The SFC reminds investors to check the SFC’s Public Register of Licensed Persons and Registered Institutions on the SFC’s website (www.sfc.hk) to ensure the parties that they deal with are properly licensed.
Notes:
- Dealing in securities is a type of regulated activity under the Securities and Futures Ordinance (SFO). Under sections 114(1)(a) and 114(1)(b) of the SFO, it is an offence to carry on a business and to hold oneself out as carrying on a business in a regulated activity without a licence from the SFC.
- During the material time, Chan was the sole director and shareholder of Prime Ocean Holdings Limited which was dissolved on 11 September 2015.
- TYG Capital Fund, an exempted company with limited liability incorporated in the Cayman Islands on 10 August 2012, offered participating shares to private investors for subscription. TYG Capital Management, also an exempted company with limited liability incorporated in the Cayman Islands on 10 August 2012, was the fund’s manager.
