The Hong Kong Securities and Futures Commission banned a former account executive from re-entering the industry.
Shum Kam Ming, who was an account executive of Sincere Securities (Sincere Securities), received the ban as a result of conducting unauthorized transactions in a client’s account.
Shum was licensed to carry on Type 1 (dealing in securities) regulated activities under the Securities and Futures (SFC) Ordinance. He was accredited to Sincere Securities between 30 June 2010 and 27 May 2015.
Substantial Losses
The disciplinary action follows an SFC investigation which found that between March 2014 and May 2015, Shum conducted a significant number of unauthorized transactions in a client’s account, causing her to suffer substantial losses.
He also tampered with the client’s standing method of statement delivery in order to prevent her from receiving genuine account statements and provided false and misleading account statements to the client to conceal the unauthorized trades and true position in her securities account.
Not a Fit and Proper Person
He also forged the client’s signature to open an investment account and transferred money from her securities accounts at Sincere Securities to the investment account for trading gold commodities without her knowledge and authority.
The SFC considers that Shum’s dishonesty calls into question his fitness and properness to be a licensed person and decided to ban him for life. Sincere Securities had compensated the client for her losses suffered as a result of the misconduct.
