The Securities and Futures Commission (SFC) has banned Mr Fa Kwan Lun from re-entering the industry for 12 months from 4 July 2014 to 3 July 2015 (Note 1).
The disciplinary action follows an SFC investigation which found that between March 2007 and December 2012, Fa, who was an account executive at the material time, concealed from his employer his beneficial interest in, and his personal trading activities conducted through, the securities account of his mother-in-law.
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In particular, such interest and personal activities in the account were not disclosed in his declarations of investments and investment accounts made to his employer.
The SFC also found that Fa had handled client money by transferring funds for four clients to their trading accounts through his personal bank account between June 2011 and July 2012.
By letting his clients’ money mingle with his money in his bank account, he failed to ensure that his clients’ assets are properly safeguarded.
The SFC considers Fa’s misconduct called into question his fitness and properness to be a licensed person. In determining the penalty, the SFC took into account that:
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By GlobalData- Fa’s concealment of personal trading activities and beneficial interest in his mother-in-law’s account from his employer was deliberate and dishonest;
- Fa’s handling of client money fell short of the standard expected of a licensed representative with his experience;
- Fa’s misconduct spanned over a prolonged period of time;
- Fa is remorseful about his misconduct; and
- Fa has an otherwise clean disciplinary record.
