SFC suspends Mung Wai Sun, ex-Ewarton Securities, for 9 months
For discretionary dealing for a client without written authorisation, and putting his orders ahead of his client.
SFC suspends Mung Wai Sun for nine months
Issue date: 2020-09-21 16:31:25
The Securities and Futures Commission (SFC) has suspended Mr Mung Wai Sun, a former licensed representative of Ewarton Securities Limited (Ewarton), for nine months from 18 September 2020 to 17 June 2021 (Note 1).
The disciplinary action follows an SFC investigation which found that between May 2017 and March 2018, Mung effected transactions in a client’s account on a discretionary basis without obtaining the client’s prior written authorization.
The SFC also found that Mung failed to ensure transactions undertaken on behalf of the client were given priority over orders for his own account during the material time. A review of these transactions revealed that orders placed for Mung’s account were within 30 seconds ahead of those in the same securities and same direction placed for the client’s account in at least 542 pairs of transactions and 133 of which ended up with more favourable outcomes to Mung’s personal account. This came to pass because either the orders placed for Mung’s account were executed at a better price than those for the client’s account or he was able to execute the sale or purchase of more shares at the same price than the client.
The SFC is of the view that Mung’s conduct was in breach of the Code of Conduct (Notes 2 & 3).
In deciding the sanction, the SFC took into account all relevant circumstances, including the duration of Mung’s misconduct, his remorse and his otherwise clean disciplinary record.
- Mung is licensed under the Securities and Futures Ordinance (SFO) to carry on Type 1 (dealing in securities) regulated activity. He was accredited to Ewarton from 30 August 2007 to 14 August 2020. He is currently not accredited to any licensed corporation. The SFC will consider the suspension decision and the grounds for it should he apply for a transfer of his accreditation under section 122 of the SFO.
- Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
- Please refer to the Statement of Disciplinary Action for the relevant provisions of the Code of Conduct.