HK regulator disciplines brokers
From Asia Jan 13 2012 BY: Will Jackson
, Contributing editor
, International Adviser
The Securities and Futures Commission has fined a former broker at Fulbright Securities Limited HK$50,000 ($6,400), and suspended the licence of a CITIC Securities Brokerage supervisor.
According to an investigation by the Hong Kong regulator, Yip Kim Fung failed to “properly record and confirm clients’ order instructions” through Fulbright’s telephone recording system.
Yip also did not act with due care and diligence in handling client instructions, the SFC found, leading him to mistakenly place orders to trade stock on the wrong account.
In deciding its penalty, the regulator said it took account of Yip’s clean disciplinary record and remorse at his actions.
While a client suffered losses from incorrectly-placed trades she was compensated accordingly by Fulbright, it added.
‘Turning a blind eye’
Regarding CITIC, the SFC has suspended the licence of Andy Lui Hing Yip for nine months, for “turning a blind eye” to unlicensed activities involving staff under his supervision.
The SFC found that, between 2005 and 2009, while Lui was the branch manager of CITIC Securities Brokerage (HK) Limited in Wanchai, Lee Chi Ying entered into arrangements with other members of staff to carry on unlicensed activities involving 40 client accounts.
“Licensees should not tolerate misconduct by their colleagues or staff and if they are in a position to stop it, as Lui was in this case, they must do so or otherwise risk being held accountable for the misconduct as well,” said the regulator in a statement.