The Securities and Futures Commission has banned Cheung Kwan Po from entering the industry for six months from 5 January to 4 July, according to a statement from the regulator.
The Hong Kong Monetary Authority referred the case to the SFC following an investigation.
The SFC found that in August 2015, Cheung, while processing a client’s bond application, photocopied the client’s signature from her account opening documents and pasted the signature on her Investment Risk Profile Questionnaire (IRPQ) form.
The client went to a Citibank branch to open a bond account for an iBond subscription. She was able to sign on every account opening document except the printout of the IRPQ, which she completed online prior her branch visit.
Cheung claimed that he did not realise that a signature was required on the IRPQ form. However, evidence showed that Citibank did send an email to its frontline staff reminding them that a client was required to sign the IRPQ upon the opening of the first investment account of the client.
The ex-banker tried to contact the client for a meeting to obtain her signature, but she was busy and failed to meet him. Cheung was warned by the bank that the client’s iBond allotment could not be processed, and as a result, he copy-pasted the client’s signature onto the IRPQ.
“The SFC considers that Cheung is not fit and proper to be a regulated person due to his failure to perform his function as a relevant individual honestly and reliably,” the regulator said.
The SFC noted that in deciding the appropriate action, it has taken into account that Cheung has been cooperative, admitted his wrongdoing, showed remorse and had an otherwise clean disciplinary record, among others.
At the time of the offense, Cheung was engaged to carry dealing and advising on securities regulated activities under the Securities and Futures Ordinance. Currently, he is not registered with the HKMA nor licensed by the SFC.
