Hong Kong

SFC Suspends Cheung Man Chit for Two Years

The Securities and Futures Commission (SFC) has said that it has suspended Mr Cheung Man Chit, a former licensed representative of Emperor Securities Limited and Emperor Futures Limited (collectively, Emperor), for two years from 28 August 2021 to 27 August 2023.

The disciplinary action follows an SFC investigation which found that between June 2013 and February 2018, Cheung:

  • submitted false client documents and information to Emperor, and stated in a client account opening document that he witnessed the client’s signature when in fact he had not done as claimed;
  • transferred around HKD3.2 million client money through his personal and related bank accounts and inputted incorrect information in Emperor’s payment or deposit forms to facilitate the transfers; and
  • used a client’s password to place trade orders in the client’s online trading account with Emperor.

The SFC considers that Cheung failed to act honestly, with due skill, care and diligence, and in the best interests of his clients. Cheung’s conduct was prejudicial to the interests of his clients and employers as it prevented Emperor from ensuring that the account opening document was properly signed by the client and client information was accurately recorded, adequately safeguarding client assets, and properly monitoring and supervising clients’ trading activities.

The SFC also found that Cheung failed to inform the SFC and Emperor of his directorship and proprietorship of two companies that he owned.

In deciding the sanction, the SFC took into account all relevant circumstances, including the duration of Cheung’s misconduct and his otherwise clean disciplinary record.