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SFAT affirms SFC decision to ban Calvin Choi Chi Kin for two years

Issue date: 2023-09-29 20:37:29

The Securities and Futures Appeals Tribunal (SFAT) handed down a determination today and upheld the Securities and Futures Commission (SFC)’s disciplinary action against Mr Calvin Choi Chi Kin, a former managing director of UBS AG, from re-entering the industry for two years from 29 September 2023 to 28 September 2025 for breaches of the SFC’s Code of Conduct and the CFA Code of Conduct (Notes 1 to 4).

Mr Christopher Wilson, the SFC’s Executive Director of Enforcement, said: “I am pleased that the SFAT has re-affirmed the SFC’s decision to sanction Mr Choi.  The SFAT’s determination sends a clear message to the market that it is a fundamental duty of licensed persons to avoid conflicts of interest and ensure that clients are treated fairly in carrying out their business activities.”

The disciplinary action followed the SFC’s investigation which found that between November 2014 and December 2015, when Choi was the project sponsor or a deal team member on two transactions for which UBS AG was mandated, he was involved in the business of the counterparties of the transactions by providing them with assistance that exceeded the scope of his role as a typical coverage banker.  In doing so, Choi potentially placed himself in a position of conflict of interest with UBS AG and/or its clients.

The SFC also found that Choi failed to disclose the actual or potential conflicts of interest to UBS AG.

End

Notes:

1. Choi was licensed under the Securities and Futures Ordinance (SFO) and was accredited to UBS Securities Hong Kong Limited to carry on Type 6 (advising on corporate finance) regulated activity between 7 June 2012 and 30 January 2016.  He was also a relevant individual engaged by UBS AG to carry on Type 1 (dealing in securities), Type 4 (advising on securities) and Type 6 (advising on corporate finance) regulated activities under the SFO between 30 October 2010 and 29 January 2016.  Choi is currently not registered with the Hong Kong Monetary Authority or licensed by the SFC.
2. General Principle 6 (Conflicts of interest) of the Code of Conduct for Persons Licensed by or Registered with the SFC (Code of Conduct) provides that a licensed or registered person should try to avoid conflicts of interest, and when they cannot be avoided, should ensure that its clients are fairly treated.  Paragraph 10.1 (Disclosure and fair treatment) of the Code of Conduct further provides that a licensed or registered person should neither advise nor deal in relation to a transaction involving actual or potential conflicts of interest unless the conflicts are disclosed and reasonable steps have been taken to ensure fair treatment of the client.
3. Paragraph 4 (Conflicts of interest) of the Corporate Finance Adviser Code of Conduct (CFA Code of Conduct) provides that a corporate finance adviser should avoid engaging in work that is likely to involve conflicts of interest.  Paragraph 4.1 (Conflicts of interest) of the CFA Code of Conduct provides that a corporate finance adviser should (a) take all reasonable steps to avoid situations that are likely to involve a conflict of interest; (b) not unfairly place its interests above those of its clients; and (c) withdraw from, or decline to accept, a mandate where a material conflict of interest arises with its client that cannot be resolved through its client giving its informed consent.
4. Please see the SFAT’s determination for SFAT Application No. 4 of 2022 on its website.

Source: SFC