The Hong Kong Securities and Futures Commission (SFC) suspended the license of Mr. Wang Shian-tang, former authorized representative of Yuanta Securities (Hong Kong) Limited for 26 months from November 20, 2024 to January 19, 2027.
The SFC’s investigation found that Wang entered into a private profit-sharing agreement with a client for discretionary trading services without Yuanta’s knowledge or consent. As part of the agreement, he was entitled to receive 10% of the annual profits he made through investments for his client. In this way, Wang’s dishonest act violated the Code of Conduct.
The regulator also found that, from October 2019 to April 2022, Wang maintained a personal investment account with a broker outside of Yuanta. Conducted 10 warrant trades with a total trade value of over $350,000 through the account. However, he failed to disclose to Yuanta the existence of the account and the transactions. By circumventing Yuanta’s employee trading policy, he prevented Yuanta from monitoring his personal trading activities.
Wang further made false and dishonest statements to the SFC about his personal account and transactions.
In deciding on the sanction against Wang, the SFC considered a number of factors, including that Wang had demonstrated dishonest behavior and the need to send a deterrent message to the market. The regulator noted that Wang has an otherwise clean disciplinary record.