.jpg)
The Securities and Futures Commission (SFC) has banned Ms Sun Xiao from re-entering the industry for 13 months from 22 May 2015 to 21 June 2016 after the Securities and Futures Appeals Tribunal (SFAT) affirmed the SFC’s decision and ordered her to pay the SFC’s costs (Notes 1 & 2).
An SFC investigation found that Sun:
- maintained a personal securities account and conducted personal trades in the account without disclosing it to her former employer; and
- failed to avoid potential conflicts of interest in that she (i) recommended target companies to her former employer as potential investment opportunities, without disclosing that she held shares in these companies and/or (ii) traded in shares of the target companies after she had recommended them to her former employer as potential investment opportunities, while two of these companies were on the firm’s restricted trading list.
The SFC concluded that Sun’s failures were in breach of the Code of Conduct. Her non-disclosure of trading activities in the secret account was deliberate and dishonest, and called into question her fitness and properness as a licensed person (Note 3).
Notes:
- Sun was licensed under the Securities and Futures Ordinance to carry on Type 9 (asset management) regulated activities and was accredited to Mount Kellett Capital (Hong Kong) Limited between 16 October 2008 and 28 October 2013. Sun is currently not licensed by the SFC.
- Please refer to the Reasons for Determination (Application No. 3 of 2014) which is available on the SFAT’s website (www.sfat.gov.hk).
- Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
