QMIS Securities Limited and former responsible officer convicted of giving SFC false or misleading information

30 Jun 2017



The Eastern Magistrates’ Court has convicted QMIS Securities Limited (QMIS) and its former responsible officer (RO), Mr Huang Kuang Cheng, of making false or misleading representations when submitting licensing information to the Securities and Futures Commission (SFC) (Notes 1 & 2).

On 3 January 2014, QMIS submitted to the SFC a form concerning the cessation of a staff member’s status as a SFC-licensed representative.  In the form, “job rotation” was cited as the reason for the staff member to cease to be a SFC-licensed representative (Note 3).

Huang, who was QMIS’s RO at the time, declared that all information provided in the form was complete, true and correct.  However, the Court found that QMIS terminated the staff member’s status as a SFC-licensed representative after he admitted to Huang that he had misappropriated client money, and as such, the provision of “job rotation” in the form as the reason for cessation of the staff member’s licensed status was misleading (Note 4).

QMIS and Huang were fined $10,000 each and ordered to pay the SFC’s investigation costs.

The SFC expects licensed persons and registered institutions to make full and accurate disclosure of all information required in licensing information forms as the SFC will consider the information and decide whether any follow-up action is necessary.  Failure of licensees and registered institutions to do so might affect their fitness and properness to be licensed.

End

Notes:

  1. QMIS was formerly known as Zavori Securities (Asia) Limited and QMIS Securities (Asia) Limited.  QMIS has been licensed under the Securities and Futures Ordinance (SFO) to carry on Type 1 regulated activity (dealing in securities) since 24 July 2009.
  2. Huang was the RO of QMIS between 25 November 2009 and 6 February 2015.  He was licensed under the SFO to carry on Type 1 regulated activity during his employment under QMIS.
  3. The form in this case was designed for licensees and registered institutions to fill in to notify the SFC of changes in the information that they have given to the SFC in their initial applications as specified in section 135 of the SFO and Parts 1 to 3 of Schedule 3 to the Securities and Futures (Licensing and Registration) (Information) Rules.
  4. The Court found that the offence QMIS committed under s384(1) of the SFO was aided, abetted, counselled, procured or induced by, or committed with the consent or connivance of, or attributable to the recklessness of, Huang.  Under s390(1) of the SFO, Huang as well as QMIS is guilty of the offence under s384(1) of the SFO and is liable to be proceeded against and punished accordingly.


Page last updated : 30 Jun 2017