THE Securities and Futures Commission (SFC) has made its first successful prosecution of an unregistered investment adviser advertising for business. Henry VI Chan Tsun-hao was fined $500 and ordered to pay $1,000 in costs after he pleaded guilty in Western Magistracy to breaching sections 5(1) and (2) of the Protection of Investors Ordinance. The SFC claimed Mr Chan placed advertisements offering investment management services in the Economic Times on October 6 and October 9 last year. In an unrelated case, a company called New Generation Management Ltd has been prosecuted for unregistered securities dealing. The company was fined $30,000 and ordered to pay $7,000 in costs. Kenneth Chan Chi-ming, a director of the company, was fined $20,000 and ordered to pay $7,000 in costs. Lee Yuk-ying, who managed the company, received the same fine and also had to pay $7,000 in costs. New Generation operated between November 4 1992 and March 3, 1993, according to the SFC, and was not registered with the SFC, an offence under Sections 48 (1) and (2) of the Securities Ordinance. A SFC spokesman yesterday reminded the investing public to ensure that they dealt with people who had valid registration or they would be dealing with people not monitored by the SFC or the stock exchange.
