Hong Kong’s SFC bans ex-China Merchants Securities account exec for Code of Conduct breaches

The Securities and Futures Commission (SFC) of Hong Kong today announces that it has temporarily banned from the industry Mr Jia Zhen over violations of the SFC’s Code of Conduct.

He is banned from re-entering the securities and futures industry for 10 months – from February 20, 2016 to December 19, 2016.

Mr Jia Zhen is a former account executive of China Merchants Securities (HK) Co., Limited (CMSHK), subsidiary of China Merchants Securities CO., LTD. (SHA:600999).

The regulatory decision comes after findings that from February 2010 to June 2011, Mr Jia Zhen entered into a private arrangement with a CMSHK client and effected transactions in the client’s account on a discretionary basis without getting the client’s authorization in written form.

By doing this, Mr Jia Zhen compromised the client’s interests, as the client was deprived from the firm’s protection on discretionary account. Because the client’s securities account was not designated as a discretionary account by the firm, the operation of the client’s securities account could not be properly monitored and supervised by the firm.

You can view the full announcement from the SFC by clicking here.

Read Also: