SFC bans Benjamin Zhu Zhiwei for 18 months

7 May 2015



The Securities and Futures Commission (SFC) has banned Mr Benjamin Zhu Zhiwei from re-entering the industry for 18 months from 6 May 2015 to 5 November 2016 (Note 1).

The disciplinary action follows an investigation by the SFC which found that, between 2009 and 2012, Zhu concealed his securities account and his beneficial interest in his friend’s securities account from his employer and conducted personal trading in these accounts without seeking prior approval from his employer as required under its internal policy.

The SFC also found that Zhu had exposed his employer to potential conflict of interest with its clients as he traded in contract for differences, the underlying securities of which were on the employer’s restricted list. While the trades were conducted after the listed companies publicly announced their corporate transactions, their securities remained on the restricted list of Zhu’s employer as per its internal policy. The trades would have been rejected by his employer had Zhu sought prior approval as required.

The SFC considers Zhu’s conduct fell short of the standards required of him under SFC’s Code of Conduct. His dishonesty also made it impossible for his employer to monitor his trading activities and to detect any potential conflict of interest situations and/or other malpractices arising from such activities (Note 2).

In deciding the penalty, the SFC has taken into consideration the duration of Zhu’s concealment of secret accounts, that he disregarded his employer’s internal control policy and had not conducted the personal trades while in possession of material non-public information.

End

Notes:

  1. Zhu was registered as a relevant individual with the Hong Kong Monetary Authority (HKMA) and engaged by JPMorgan Chase Bank, National Association to carry on Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) regulated activities between 19 January 2009 and 26 September 2012, and was also engaged by J.P. Morgan Securities (Asia Pacific) Limited to carry on Type 1 (dealing in securities) regulated activity between 3 January 2012 and 26 September 2012. Zhu is currently not registered with the HKMA or licensed by the SFC.   
  2. Code of Conduct for Persons Licensed by or Registered with the SFC.

A copy of the Statement of Disciplinary Action is available on the SFC website



Page last updated : 7 May 2015