Wednesday, 9 May 2012

Broker banned for life

I wrote before: 

Bursa takes action against remisier.

"In my opinion, persons who touch the accounts of clients and/or are caught in false and unethical trading should be barred for life from the securities industry".

The remisier was only 12 months suspended.

The SFC (Securities and Futures Commission) from Hong Kong seems to agree with me:

Broker Wong Chiu Wan banned for life for misappropriation of client assets

"The Securities and Futures Commission (SFC) has banned Mr Wong Chiu Wan, a former licensed representative of KGI Asia Limited (KGI), from re-entering the industry for life (Note 1).

The disciplinary action follows an SFC investigation which found that, between April and June 2011, Wong conducted unauthorized trades in a client’s securities account at KGI and sold the client’s shares without the consent or instruction of that client.

In an attempt to conceal his dishonest acts, Wong also forged the client’s signature to falsify an instruction to amend the client’s e-mail address on KGI’s records in order to prevent the client from receiving trading statements from KGI.

KGI has compensated the affected client and restored the original stock and cash position in her account. The client’s losses, which amounted to over $178,000 including interest, had been repaid by Wong to KGI."

I completely agree, touch the clients money is immediately a red card, out for live, a no-brainer actually.

Although Hong Kong has some strange rules (they still have no quarterly results for instance), they have a pretty good enforcement. Malaysia can learn from them.

1 comment:

  1. Hong Kong has it right. Banned for life is the minimum. I hope he gets prosecuted under criminal laws too!