The Securities and Futures Commission (SFC) from Hong Kong announced on Monday that it had suspended a former licensed representative of Emperor Securities Limited and Emperor Futures Limited for alleged misconduct related to his role within the company. According to the press release, Cheung Man Chit was imposed with a two-year suspension starting from August 28, 2021, until August 27, 2021.
The accusation details that Cheung arranged a transfer of almost $3.2 million from a client through his bank accounts and inputted incorrect information in Emperor’s payment or deposit forms to facilitate the transfers. Furthermore, the SFC said: “[Cheung] submitted false client documents and information to Emperor, and stated in a client account opening document that he witnessed the client’s signature when in fact he had not done as claimed.”
Moreover, the former Emperor’s representative allegedly used a client’s password to place trade orders through its trading account in the company. “The SFC considers that Cheung failed to act honestly, with due skill, care and diligence, and in the best interests of his clients. Cheung’s conduct was prejudicial to the interests of his clients and employers as it prevented Emperor from ensuring that the account opening document was properly signed by the client and client information was accurately recorded, adequately safeguarding client assets, and properly monitoring and supervising clients’ trading activities,” the Hong Kong financial authority added.
Failing to Disclose Ownership of His Existing Companies
But, the executive is accused of failing to appropriately inform both the SFC and Emperor about the directorship and ownership he held on the companies he owned at that time. As stated by the watchdog, Cheung was licensed and accredited to Emperor between May 29, 2012, and March 6, 2017, to deal with securities and futures contracts under Type 1 regulated activities.
The SFC has been active over the last few weeks in tackling down financial-related misconduct. The watchdog and the Independent Commission Against Corruption (ICAC) recently announced that it had successfully launched an operation dubbed ‘Jade Qilin’ that led to the arrest of five individuals. A former senior executive of an unnamed listed company was among the group.
