SFC REPRIMANDS SOUTH CHINA SECURITIES OVER TRAINEES
The Securities and Futures Commission has reprimanded South China Securities - one of the biggest locally owned brokerage houses - for failing to register trainees with the commission.
Separately, the SFC suspended the registrations of another two employees of different brokerage houses for practices which led to clients suffering losses.
South China Securities recruited five trainees to trade for clients without registering them with the SFC, as required by law, between September 1, 1999 and May 31, 2000, the SFC said yesterday.
Dealer's representative Tam Yui-man, who recruited the trainees and acted as their supervisor, had his registration suspended for two months in March for failing to register the five.
Separately, the SFC suspended the registration of Phillip Securities (HK) dealer's representative Raymond Chan Shek-hong for six months.
Mr Chan entered into a private agreement with a client in July last year under which she allowed him to use her account to make trades up to a maximum investment of HK$600,000. However, Mr Chan traded more than the HK$600,000 limit and the client lost about $200,000 and Mr Chan refused to compensate her.
The SFC also suspended the registration of Mayfair Securities dealer's representative Ngan Hei-wah for a week after Mayfair complained to the SFC over an alleged fraud operated by an unnamed former employee who had supervised Mr Ngan but has since absconded. The SFC said Mr Ngan should not have advised clients to buy into the clearly questionable scheme.
