Two securities dealers, including a former employee of HSBC Broking Securities, have been reprimanded by the Securities and Futures Commission (SFC) for market conduct breaches and breaking internal rules of their employers.
Kwan Wing-on, who was sacked by HSBC Broking Securities because of the commission inquiry, failed to comply with his former company's staff dealing rules by maintaining a securities trading account with another broker firm.
As he failed to inform his brokerage he was a registered dealer, the firm did not seek written consent from his boss before allowing him to trade, according to the commission.
Separately, the commission also said Cheung Yuk-sheung of President Securities (Hong Kong) failed to establish the proper identities of his clients and did not obtain written authorisation before allowing third parties to operate their accounts.
Mr Cheung did not disclose to his employer that one of his clients and the authorised agent of another client were registered persons. He also issued his own cheques to settle the outstanding balance in a client's account, according to the commission.
'Cheung and Kwan were guilty of misconduct and their fitness and properness had been called into question,' the SFC concluded.
