The Securities and Futures Commission (SFC) has banned Chan Shun King from re-entering the industry for 24 months.
The regulator said the former account executive of Sun Hung Kai Investment Services Limited (SHKIS) breached of the SFC’s code of conduct.
The disciplinary action follows an SFC investigation which found that between October 2008 and August 2015, Chan changed transactions in two clients’ accounts on a discretionary basis without obtaining their authorisation as well as the approval of SHKIS’s senior management.
In doing so, Chan not only breached the regulatory requirements on the authorisation and operation of discretionary accounts under the code of conduct, but also SHKIS’s policies and procedures for discretionary accounts.
Reasoning
The SFC said: “Chan had failed to act with due skill, care and diligence and in the best interests of the clients.
“Chan’s conduct was prejudicial to the clients’ interests as it prevented SHKIS from monitoring and supervising the operation of the accounts and the clients were deprived of protection against the risk of unauthorized trades carried out in their accounts.
“In deciding the sanction, the SFC took into account all relevant circumstances, including the duration of Chan’s misconduct and her otherwise clean disciplinary record.”
