The Eastern Magistrates’ Court today convicted Mr Chau Pak Yin, a finfluencer and previously known as Chau Kin Hei, for providing investment advice on a subscription-based chat group on Telegram he hosted without a licence in a criminal prosecution by the Securities and Futures Commission (SFC) (Notes 1 to 5).
Chau was sentenced to six weeks’ imprisonment. He was also ordered to pay the SFC’s investigation costs.
The Court heard that between 16 April 2021 and 14 May 2021, Chau hosted a chat group on Telegram named “Futu真。財自Private Group” under his Telegram username “Futu大股東”. The Telegram chat group welcomed members of the public on paid subscription basis.
During the material time, Chau circulated commentaries, recommendations and target prices on various securities and responded to questions raised by paid subscribers of the Telegram chat group regarding the performance of securities listed on the Nasdaq. He charged members of the Telegram chat group a monthly subscription fee of US$200 or HK$1,560, earning subscription fees totalling HK$43,680.
The SFC’s Executive Director of Enforcement, Mr Michael Duignan, said, “The SFC is committed to tackling the unlawful acts of finfluencers. We will have no hesitation in holding finfluencers accountable when their provision of investment-related content and advice on social media and online platforms constitute regulatory activities for which they should have been licensed. (Note 6)”
“Finfluencers who are not licensed by the SFC may fail to meet the SFC’s required standards of conduct and accountability, potentially exposing investors to significant risks and harm. Therefore, investors should verify finfluencers’ regulatory status, exercise caution when considering their advice, and ensure that they fully understand the risks and key features of any investment opportunities touted via social media or online before making any financial commitments.”
Chau was remanded in custody after his bail application was rejected pending his intended appeal against conviction and sentence.
The SFC reminds the investing public to check the SFC’s Public Register of Licensed Persons and Registered Institutions on the SFC’s website (www.sfc.hk) to ensure that firms and individuals who provide investment advice on securities are properly licensed.
Notes:
- Finfluencers, or financial influencers, are individuals who leverage social media platforms to share investment-related content.
- Chau was known as “Futu大股東” or “富途大股東” on social media platforms.
- Chau was charged with an offence under sections 114(1)(a) and 114(8) of the Securities and Futures Ordinance (SFO). Please see the SFC’s press release dated 8 May 2025.
- Under Schedule 5 of the SFO, “advising on securities” is a type of regulated activity under the SFO. Under sections 114(1)(a) and 114(8) of the SFO, it is an offence for a person, without reasonable excuse, to carry on a business in a regulated activity without a licence from the SFC.
- Please see the SFC’s press release dated 20 June 2024 on a separate case involving finfluencer.
- Please see the SFC’s press release dated 6 June 2025 on global regulatory effort to curb activities of unauthorised finfluencers.
