Hong Kong's Securities Snd Futures Commission Bans Ng Chau For Six Months

The Securities and Futures Commission (SFC) has banned Mr Ng Chau, a former account executive of Get Nice Securities Limited (Get Nice), from re-entering the industry for six months from 15 December 2017 to 14 June 2018 for breach of the SFC’s Code of Conduct (Notes 1 & 2).   

The SFC found that Ng effected transactions in a client’s securities account and margin account between October 2013 and November 2014 on a discretionary basis without (i) obtaining the client’s prior written authorization and (ii) the knowledge and approval of his then employer.

Although the client had verbally authorized Ng to trade in her accounts on a discretionary basis, the absence of a written authorization prevented Get Nice from monitoring the operation of the client’s accounts. 

The SFC is of the view that Ng’s conduct was in breach of the regulatory requirements on the authorization and operation of a discretionary account under the Code of Conduct.

In deciding the penalty, the SFC took into account the duration of Ng’s misconduct, his clean disciplinary record and that he had compensated the affected client for all the trading losses incurred in the accounts.

Notes:

1. Ng was licensed under the Securities and Futures Ordinance to carry on Type 1 (dealing in securities) regulated activity and accredited to Get Nice Securities Limited from 18 December 2009 to 15 April 2015.  Ng is currently not licensed by the SFC.
2. Paragraph 7.1(a)(ii) of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (Code of Conduct) requires a licensed person to obtain the client’s written authorization before operating a discretionary account for the client.  Paragraph 7.1(d) of the Code of Conduct requires senior management to approve the opening of discretionary accounts.