SFC Suspends{X} for Hawking of Futures Contracts

15 Dec 2004

The SFC has suspended the licence of {X} as a representative for four months under the Securities and Futures Ordinance (SFO) for misconduct relating to hawking of futures contracts. {X} is suspended from 15 December 2004 to 14 April 2005 (Note 1).

The suspension follows {X}’s conviction at the Eastern Magistracy of hawking of futures contracts contrary to the Commodities Trading Ordinance (Note 2).

From around April 2001 to December 2002, {X} made unsolicited calls to prospective clients by way of telephone calls and visits in person to promote the trading of futures contracts on commodities exchanges in Japan. {X} gave the prospective clients promotional materials and recommendations to buy the futures contracts through his employer. {X} asked each of the clients to open an account with his employer to trade futures contracts.

The SFC inquiry into the misconduct of {X} found that he failed to comply with relevant law and regulations. The SFC concludes that {X}’s fitness and properness has been called into question and decides to suspend him.

In determining {X}’s penalty, the SFC has taken into account of {X}’s co-operation and his genuine remorse for his misconduct. {X} received a shorter suspension than the SFC had originally proposed because he admitted that his actions were wrong.

Mr Alan Linning, SFC’s Executive Director of Enforcement, said: "Under the SFO, any call made not by express invitation of the person called upon with a view to inducing that person to enter into an agreement to purchase or sell regulated investment products is a criminal offence. It is important for a licensed representative to understand and recognise what constitutes an unsolicited call and to exercise due care to ensure that his or her marketing effort and strategies comply with the law."


Notes to Editor:

1. {X} is a licensed representative in Type 2 (dealing in futures contracts) regulated activity accredited to Tanrich Futures Limited.
2. Please refer to the press release issued on 21 April 2004.

Note: The names of certain individuals in some news releases have been masked because they satisfy certain criteria set out under the Rehabilitation of Offenders Ordinance.

Page last updated : 25 Jan 2019