Hong Kong's Securities And Futures Commission: Lo Chun Lam Convicted Of Unlicensed Futures Contracts Business

The Eastern Magistrates’ Court has convicted Mr Lo Chun Lam of carrying on a business of advising on futures contracts when he was not licensed by the Securities and Futures Commission (SFC) to do so (Note 1).

Lo, who pleaded guilty, was fined $7,500 and was also ordered to pay the SFC’s investigation costs.

The court found that between May and August 2013, Lo gave advice on futures contracts in the name of “Cat Sir” or “Trader Cat” to subscribers who had paid to join private discussion groups he had set up in Facebook and LINE, a smartphone application. Subscribers paid fees of $3,750 in order to access the private discussion groups for three months.  

The SFC reminds investors not to deal with unlicensed firms or people in order to protect their own interests. Provision of securities and futures advices, 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.