The Securities and Futures Commission (SFC) of Hong Kong has revoked the licences of Union Securities Limited (Union Securities) and its two responsible officers, Ma Kin Chung and Cheng Tai Ha.
Ma and Cheng have also been prohibited from re-entering the industry for life.
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An SFC investigation found that Union Securities, with the involvement of Ma and Cheng, misappropriated approximately $400,000 from two clients who thought they were depositing those moneys for settlement of orders.
Under the term of its licence, Union Securities was prohibited from holding client assets and was required to place all orders with an execution broker. The funds were deposited into an account controlled by Ma in the name of Union Securities’ predecessor which Ma had represented to the SFC to have been ceased to be used. Bogus statements were then issued to the two clients.
Ma and Cheng fled Hong Kong in late 2012 and Union Securities’ premises were vacated.
The investigation also found that Union Securities provided false and/or misleading information to the SFC by omitting an overdraft in its financial returns submitted under the Securities and Futures (Financial Resources) Rules.
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By GlobalDataDue to the default of Union Securities, clients may lodge claims to recover their losses with the Investor Compensation Company Limited.
