Hong Kong’s SFC Committee (SFC) has banned Law Man Wai, a former licensed representative of Cinda International Securities Limited (CISL), from the review of industry for three years from June 19th 2025 to June 18 2028.
Disciplinary action follows a SFC survey, which found that the law had used accounts belonging to his sister and a friend who is maintained with CISL and another brokerage brokerage brokerage.
Between March and September 2023, the law performed a total of 109 corresponding or washing in nine stocks in the accounts of his sister and friend, as well as his own personal account at CISL. The law made these transactions to avoid compulsory clearance due to possible marginal calls, regardless of their potential impact on trading price or the volume of the relevant shares.
The SFC also found that the law intentionally hid its beneficial interests and personal transactions in these accounts, in violation of CISL’s staff. He also confirmed the executed transactions with his sister and friend using CISL’s recorded telephone line and submitted an order files to the CISL signed by the CISL he signed, creating a false impression that orders came from them when that was not the case.
In addition, the law talked about his friend to order his friend’s account in the other brokerage, leaving the business that did not know that the law was operating the account.
The SFC concluded that the behavior of the law was dishonest and raised serious concerns about its suitability and license. During the ratification decision, the SFC took into account that there was insufficient evidence that the law has executed washing and manipulating transactions and that the law has an otherwise net disciplinary record.