Hong Kong's Securities And Futures Commission: Lo Kam Chung Convicted Of Unlicensed Securities Advising Via Facebook

The Eastern Magistracy today convicted Mr Lo Kam Chung of carrying on a business of advising on securities when he was not licensed by the Securities and Futures Commission (SFC) to do so (Note 1).

Lo, who pleaded guilty, was fined $20,000 and given a community service order of 80 hours to be completed within 12 months. Lo was also ordered to pay the SFC’s investigation costs. 

The court found that between April and November 2010, Lo, upon subscription, gave securities advice in the name of “Peter Sun” to paid subscribers to a private discussion group he had set up in Facebook. 

The SFC identified three subscribers who paid subscription fees of $200-$300 per month to “Peter Sun” but did not follow his advice. 

The investing public is at risk from unlicensed operators like Lo and it is fortunate in this case that the SFC’s action stopped Lo’s scheme before any investors suffered losses.

The SFC reminds investors not to deal with unlicensed firms or people in order to protect their own interests. Provision of securities advice – irrespective of the medium – must be licensed by the SFC. Investors can check if a firm or person is licensed on the SFC website (www.sfc.hk).

Note:
1. Lo was convicted under section 114 of the Securities and Futures Ordinance.