The Securities and Futures Commission (SFC) has banned Mr Chow Chun Tung from re-entering the industry for five years from 19 April 2013 to 18 April 2018 (Note 1).
The disciplinary action follows an SFC investigation into Chow’s conduct which found that Chow had:
- operated a total of 33 clients’ accounts on a discretionary basis without any written authorization from the clients;
- failed to ensure his recommendations for his clients to invest in derivative products were reasonable in all the circumstances;
- failed to assure himself that his clients understood the nature and risks of derivative products and had sufficient net worth to assume the associated risks and to bear the potential losses of trading in the products; and
- entered into a profit-sharing arrangement with his clients without the knowledge and consent of his employer.
The SFC concludes that Chow’s conduct was in breach of the Code of Conduct and his fitness and properness has been called into question (Note 2).
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Notes:
- Chow was licensed under the Securities and Futures Ordinance to carry on Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities between February 2007 and March 2012, during which he was accredited to Phillip Securities (Hong Kong) Limited. Chow is currently not a licensed person.
- Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission
- A copy of the Statement of Disciplinary Action in relation to the matter is available on the SFC website.