Former CEO of Ping An securities unit gets one-year ban
He Zhihua punished for firm's failure to implement measures on money laundering
The ban was implemented for a year for failing to ensure the company had enough measures against money-laundering in place, the regulator said yesterday.
Before taking the disciplinary action against He Zhihua, who was the chief executive and the most senior person at the securities firm at the time when the internal control problems were found, the regulator had fined Ping An HK$6 million in July last year over the same issues.
"The SFC will hold senior management accountable for internal control deficiencies where it is clear they are involved and responsible," said Mark Steward, the commission's executive director of enforcement.
Ricky Tam Siu-hing, the founder and chairman of the Hong Kong Institute of Investors, said: "In the past, when the SFC took disciplinary action, many of the cases were related to misappropriation of client funds."
Tam added that cases related to anti-money-laundering uncovered in Hong Kong were rare, compared to Europe and the United States.
He Zhihua was banned from being a licensed securities representative, being a responsible officer of a licensed corporation and acting as an executive officer of a registered institution.