The Securities and Futures Commission (SFC) has banned Ms Chan Shun King, a former account executive of Sun Hung Kai Investment Services Limited (SHKIS), from re-entering the industry for 24 months from 25 November 2020 to 24 November 2022 for breaches of the SFC’s Code of Conduct (Notes 1 to 3).

The disciplinary action follows an SFC investigation which found that between October 2008 and August 2015, Chan effected transactions in two clients’ accounts on a discretionary basis without obtaining the clients’ prior written authorizations as well as the approval of SHKIS’s senior management.  In doing so, Chan not only breached the regulatory requirements on the authorization and operation of discretionary accounts under the Code of Conduct, but also SHKIS’s policies and procedures for discretionary accounts.

The SFC considers that Chan had failed to act with due skill, care and diligence and in the best interests of the clients.  Chan’s conduct was prejudicial to the clients’ interests as it prevented SHKIS from monitoring and supervising the operation of the accounts and the clients were deprived of protection against the risk of unauthorized trades carried out in their accounts.

In deciding the sanction, the SFC took into account all relevant circumstances, including the duration of Chan’s misconduct and her otherwise clean disciplinary record.

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