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The Securities and Futures Commission (SFC) has banned Ms Chau Hang Yu and Mr Steve Chow Chun Yin, both former employees of The Hongkong and Shanghai Banking Corporation Limited (HSBC), from re-entering the industry for life following their criminal convictions (Notes 1 & 2).
The District Court found that Chau and Chow, both of whom were responsible for selling and promoting investment products at HSBC and knew one another at the material times, made false claims in 2012 and 2014 that certain HSBC customers had agreed to subscribe for unit trust funds (UTFs). They received sales commission after HSBC processed the subscription orders in the belief that they had sold the UTFs to the customers when in fact it was not the case (Note 3).
The District Court also found that Chau referred her customers to Chow so that he could obtain more sales commission after she had reached the cap for receiving sales commission. Chau later asked Chow for customer referral fees. He gave her $100,000.
The SFC considers Chau and Chow are not fit and proper persons to be licensed or registered to carry on regulated activities as a result of their convictions.
Notes:
- Chau (formerly known as Aixingero Chat Yung) and Chow were relevant individuals engaged by HSBC to carry on Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities under the Securities and Futures Ordinance. Both Chau and Chow are currently not registered with the Hong Kong Monetary Authority or licensed by the SFC.
- On 23 February 2016, Chau was sentenced to 12 months of imprisonment after her conviction for two counts of fraud under the Theft Ordinance. Chow was sentenced to 18 months of imprisonment after his conviction for two counts of fraud under the Theft Ordinance and one count of offering an advantage to an agent under the Prevention of Bribery Ordinance.
- Please see the Reasons for Sentence (Case No: DCCC 130/2015) which is available on the Judiciary’s website (www.judiciary.gov.hk).
