SFC fines PICC Asset Management (Hong Kong) Co Ltd HK$2.8m for fund management failures

The firm, owned by PICC (1339) managed a fund which from May-2018 to Jan-2020 only held 1 to 3 stocks, including "Stock X". The manager was "S", who left on 8-Apr-2020. We note that the only licensee who ceased on that date was Mr Shum Wai Nap, who is now licensed to Tianda Asset Management Ltd.

Further information

Statement of Disciplinary Action

SFC reprimands and fines PICC Asset Management (Hong Kong) Company Limited $2.8 million for fund management failures

Issue date: 2024-02-05 16:15:00

The Securities and Futures Commission (SFC) has reprimanded and fined PICC Asset Management (Hong Kong) Company Limited (PICC) $2.8 million over its failures to discharge duties as the manager of a Cayman-incorporated fund between May 2018 and May 2020 (Note 1).

The SFC’s investigation found that PICC failed to properly manage the fund to ensure that its investments were in line with its stated investment strategy, objectives and investment restrictions.  PICC also failed to implement adequate and effective internal controls for the fund’s risk management and to adequately supervise the staff designated as the fund’s investment manager.

In particular, the SFC found that:

In deciding the disciplinary sanctions against PICC, the SFC has taken into account all relevant circumstances, including:



  1. PICC is licensed to carry on Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance.
  2. The fund’s investment objective was to achieve capital preservation combined with steady capital appreciation over the long term through primarily investing in a diversified portfolio of equity securities.
News captured as of:2024-02-05 16:15:00

Source: SFC



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