Company involved: China Tonghai Securities Limited
People involved: Mr Chan Yiu Ting
Penalty: prohibit from re-entering the industry for 18 monthsThe SFC has prohibited Mr Chan Yiu Ting, a former account executive of China Tonghai Securities Limited (CTSL), formerly known as Oceanwide Securities Company Limited and Quam Securities Company Limited, from re-entering the industry for 18 months from 12 August 2020 to 11 February 2022, for breach of the SFC’s Code of Conduct.The disciplinary action follows an SFC investigation which found that between April 2011 and June 2018, Chan effected about 6,031 trades involving over $573 million worth of shares in a client’s account on a discretionary basis without obtaining the client’s prior written authorization.
Summary: The SFC considers that Chan had failed to act with due skill, care and diligence and in the best interests of the client. The absence of written authorization for discretionary transactions was prejudicial to the client’s interests as Chan’s employer was prevented from monitoring and supervising the operation of the account and the client was deprived of protection against the risk of unauthorized trades carried out in her account.