The Securities and Futures Commission (SFC) has banned Mr Philip Leung Ming Yin, a former account executive of HSBC Broking Securities (Asia) Limited (HSBC Securities), from re-entering the industry for six months from 17 March 2017 to 16 September 2017.
The SFC found that Leung used his mobile phone and messaging application WeChat to receive and confirm order instructions with nine clients between March and July 2015 without maintaining a proper record of the instructions as required by the SFC’s Code of Conduct.
The SFC also found that Leung effected transactions in a client account on a discretionary basis from March to August 2015 without obtaining proper authorization from the client as required by the Code of Conduct.
Although the client had verbally authorized Leung to conduct discretionary trades in her account, he failed to obtain her written authorization. Furthermore, HSBC Securities’ internal policy does not allow its account executives to operate client accounts on a discretionary basis.
The SFC considers Leung’s conduct exposed his clients to risks and his former employer to potential disputes arising from claims of unauthorized transactions in the client account.
In deciding the penalty, the SFC took into account that Leung has admitted and expressed remorse for his misconduct.