The securities regulator has fined Tanrich Futures HK$4 million and reprimanded the firm for failing to stop its staff cold-calling potential clients in 2003 and 2004. The Securities and Futures Commission also banned a former responsible officer at the firm, Yip Man-fun, from working in the securities industry for nine months. The SFC found that Tanrich, under Mr Yip's management between 2003 and 2004, had failed to prevent staff from cold-calling investors, an illegal practice in Hong Kong. Tanrich staff called or met people they did not know and induced them to trade futures contracts on various foreign currencies and commodities. They advised investors to hold equal long and short positions to 'lock in' their futures positions, without explaining the risks and costs involved. The SFC said if Tanrich staff were involved in cold-calling in the next two years, the regulator would suspend its licence for at least 12 months. Tanrich will engage an independent audit firm to review its internal controls to prevent cold-calling and locking in of contracts. Separately, the SFC has taken disciplinary action against three staff at Hantec Group who arranged for Hong Kong clients to trade leveraged foreign-exchange contracts in a New Zealand firm not licensed by the SFC. Hantec is licensed by the SFC, but a related firm, Cosmos Hantec Investment (NZ), is not. After being detected by the SFC, Cosmos Hantec moved its New Zealand operations to Macau to continue the illegal trades. The SFC revoked the trading licence of Ng Chiu-mui, the Hantec chairman's wife, and banned her from the industry for 10 years for overseeing the illegal trades. Two officers at Hantec who helped in the illegal dealings were also punished. Law Kai-yee's licence was suspended for two years and three months. Tang Yuen-ting was banned from the industry for nine months. She was also fined HK$1.45 million, the amount of commissions she received from the illegal trades.