HSBC Broker Banned by Hong Kong Regulator

A former broker at HSBC Broking has been banned for life by Hong
Kong’s Securities and Futures Commission (SFC) after he illegally used clients’
accounts for trading in futures markets, including FX contracts.

SFC says an investigation into activities by Lam Yuk Wai found that between
September 2011 and July 2015, he had conducted over 100 unauthorised
transactions in the accounts of seven clients, causing them to suffer
substantial losses.

It also
finds that Lam deceived his clients by providing them with false and misleading
account information which substantially overstated the equity value of their
accounts, with an intent to conceal the extent of their investment losses and attempted
to conceal his misconduct from HSBC Broking by creating deceptive telephone
calls in which he pretended to engage in conversations with clients and take
order instructions from them.

As a result
of Lam’s misconduct, HSBC Broking, which self reported the case to the SFC, has paid over $70 million to the affected
clients to compensate for their losses.

“The SFC
considers that Lam’s dishonesty calls into serious question his fitness and
properness to be a licensed person and decided to ban him for life,” it says in
a statement.

Colin_lambert@profit-loss.com

Twitter @lamboPnL

Twitter @Profit_and_Loss

Colin Lambert

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