Hong Kong SFC imposes a $1.5 million fine on Ewarton Securities

The Hong Kong Securities and Futures Commission (SFC) has issued a fine on Ewarton Securities Limited in the amount of $1.5 million for internal control failings and breaches of the SFC’s Code of Conduct.

The fine follows sanctions which the Hong Kong regulator imposed on Mung Wai Sun, a former representative of Ewarton.

Hong Kong watchdog’s investigation found that Mung Wai Sun influenced transactions in a client’s account without obtaining the proper writer authorization from the client.

Hong Kong SFC

Mung also failed to ensure transactions undertaken on behalf of the client were given priority over orders for his own account in the period between May 2017 and March 2018.

In SFC’s decision to impose a fine on Ewarton, the regulator took into consideration the duration of the company’s misconduct. The Commission also took into account the need to send the financial industry a massage “that such internal control failures will not be tolerated.”

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