Ms Chan Shun King, ex-SHK, banned for 2 years
For discretionary dealing in 2 clients' accounts for 7 years without written authorisation.
SFC bans Chan Shun King for 24 months
Issue date: 2020-11-25 16:30:28
The Securities and Futures Commission (SFC) has banned Ms Chan Shun King, a former account executive of Sun Hung Kai Investment Services Limited (SHKIS), from re-entering the industry for 24 months from 25 November 2020 to 24 November 2022 for breaches of the SFC’s Code of Conduct (Notes 1 to 3).
The disciplinary action follows an SFC investigation which found that between October 2008 and August 2015, Chan effected transactions in two clients’ accounts on a discretionary basis without obtaining the clients’ prior written authorizations as well as the approval of SHKIS’s senior management. In doing so, Chan not only breached the regulatory requirements on the authorization and operation of discretionary accounts under the Code of Conduct, but also SHKIS’s policies and procedures for discretionary accounts.
The SFC considers that 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.
- Chan was licensed under the Securities and Futures Ordinance to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 3 (leveraged foreign exchange trading) and Type 9 (asset management) regulated activities and accredited to SHKIS, Sun Hung Kai Commodities Limited, Sun Hung Kai Forex Limited and SHK Fund Management Limited on various dates between 22 November 2007 and 21 April 2016. Chan is currently not licensed by the SFC.
- General Principle 2 of the Code of Conduct for Persons Licensed by or Registered with the SFC (Code of Conduct) provides that a licensed person should act with due skill, care and diligence, in the best interests of its clients and the integrity of the market in conducting its business activities.
- Paragraph 7.1(a) of the Code of Conduct requires a licensed person to obtain a written authorization before it can operate a discretionary account for a client. Paragraph 7.1(c) of the Code of Conduct requires a licensed person to designate such account as a discretionary account. Paragraph 7.1(d) of the Code of Conduct requires senior management to approve the opening of a discretionary account.
News captured as of:2020-11-25 16:30:28
- SUN HUNG KAI COMMODITIES LIMITED 新鴻基期貨有限公司
- SUN HUNG KAI FOREX LIMITED 新鴻基外滙有限公司
- SUN HUNG KAI INVESTMENT SERVICES LIMITED 新鴻基投資服務有限公司