SFC takes action against broker staff
THE Securities and Future Commission (SFC) has taken action against management personnel and dealers at two brokerages involved in rat-trading.
Staff members in K. S. Kam and Co and Onward Securities were found to be involved in rat-trading or trading malpractices to the disadvantage of their principals' clients.
The owner of K. S. Kam and Co, Kam Kwong-shun, was reprimanded for failing to exercise proper management, supervision and control over his business.
A staff member at his firm was found to have facilitated rat-trading by floor traders of other brokers using nominee accounts at K. S. Kam.
The SFC suspended registration of Lee Wing-hing as securities dealer's representative for 30 days from today. Mr Lee, a dealer with Onward Securities, committed rat-trading in November 1994 when a dealer representative of Tsang Shiu-po.