The Securities and Futures Commission (SFC) has prohibited Mr Chan Yiu Ting, a former account executive of China Tonghai Securities Limited (CTSL), formerly known as Oceanwide Securities Company Limited and Quam Securities Company Limited, from re-entering the industry for 18 months from 12 August 2020 to 11 February 2022, for breach of the SFC’s Code of Conduct (Note 1).

The disciplinary action follows an SFC investigation which found that between April 2011 and June 2018, Chan effected about 6,031 trades involving over $573 million worth of shares in a client’s account on a discretionary basis without obtaining the client’s prior written authorization.

In doing so, he also failed to comply with the policies and procedures of CTSL in relation to discretionary accounts.

The SFC considers that Chan had failed to act with due skill, care and diligence and in the best interests of the client.  The absence of written authorization for discretionary transactions was prejudicial to the client’s interests as Chan’s employer was prevented from monitoring and supervising the operation of the account and the client was deprived of protection against the risk of unauthorized trades carried out in her account (Notes 2 & 3).

In deciding on the disciplinary sanction, the SFC took into account all relevant circumstances, including the duration of Chan’s misconduct and his otherwise clean disciplinary record.