SFC bans Jacky Cheung Chiu Hung for two years

12 Sep 2019



The Securities and Futures Commission (SFC) has banned Mr Jacky Cheung Chiu Hung, a former employee of Hang Seng Bank Limited, for two years from 12 September 2019 to 11 September 2021 (Note 1).

The disciplinary action arose from an SFC investigation which found that Cheung, a relationship manager at the material time, had conducted three unauthorized transactions in the accounts of a customer between December 2015 and January 2016.

Cheung also forged the customer’s signature on the bank’s instruction forms to facilitate the unauthorized transactions.

The unauthorized transactions involved the switching of an investment fund in the customer’s investment account and two unauthorized fund transfers from the customer’s personal consolidated bank account to her credit card account (Notes 2 & 3).

The SFC considers Cheung’s conduct dishonest and calls into question his fitness and properness to be a registered or licensed person.

In deciding the sanction, the SFC took into account all relevant circumstances, including the bank’s financial loss resulting from Cheung’s misconduct and his otherwise clean disciplinary record.

The case was referred to the SFC following an investigation by the Hong Kong Monetary Authority (HKMA).

End

Notes:

  1. Cheung was registered as a relevant individual of Hang Seng Bank Limited between 8 May 2013 and 29 February 2016 to carry on Type 1 (dealing in securities), Type 4 (advising on securities) and Type 7 (providing automated trading services) regulated activities under the Securities and Futures Ordinance.  Cheung is currently not registered with the HKMA nor licensed by the SFC.
  2. General Principle 1 of the Code of Conduct for Persons Licensed by or Registered with the SFC (Code of Conduct) provides that a licensed or registered person should conduct business activities honestly, fairly, and in the best interests of its clients and the integrity of the market.
  3. Paragraph 7.1(a) of the Code of Conduct provides that a licensed or registered person should not effect a transaction for a client unless before the transaction is effected (i) the client, or a person designated in writing by the client, has specifically authorized the transaction; or (ii) the client has authorized in writing the licensed or registered person or any person employed by the licensed or registered person (who must in turn be a licensed or registered person) to effect transactions for the client without the client’s specific authorization.

 

 


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



Page last updated : 12 Sep 2019