Rat trader at Kingston suspended for 6 months
The Securities and Futures Commission (SFC) has suspended Pang Chi-wing, a floor trader with Kingston Securities, for six months for rat trading.
The SFC said the suspension followed an investigation it conducted between October 1, 1993, and February 28, 1994, while Mr Pang was a dealer's representative at Kingston Securities.
It was found that Mr Pang had profited from rat trading through the unauthorised use of a client's account at Stephil Securities Co.
According to the SFC, he made a profit of $17,500.
As a result of these findings, the SFC concluded that Mr Pang failed to discharge his duties in a fair and honest manner, 'which raised serious concerns about his fitness and properness as a registered representative under the Securities Ordinance'.
Gerard McMahon, the SFC's executive director of enforcement, said: 'This suspension is a continuation of the commission's efforts to discipline registered persons who have been involved in trading malpractices that are seriously prejudicial to the investing public.' He urged all brokers to monitor the activities of staff and to have in place adequate internal controls that would prevent or assist in the detection of trading malpractices.
In another investigation, the SFC said Sanfull Securities and Chan Chieh-chung, one of its dealing directors, were found guilty of misconduct.
It said the company and Mr Chan allowed six clerical staff to act as dealer's representatives.