The Securities and Futures Commission (SFC) has banned Mr Shum Kam Ming, a former account executive of Sincere Securities Limited (Sincere Securities), from re-entering the industry for life in connection with conducting unauthorized transactions in a client’s account (Note 1).
The disciplinary action follows an SFC investigation which found that between March 2014 and May 2015, Shum had:
- conducted a significant number of unauthorized transactions in a client’s account, causing her to suffer substantial losses (Note 2);
- tampered with the client’s standing method of statement delivery in order to prevent her from receiving genuine account statements;
- provided false and misleading account statements to the client to conceal the unauthorized trades and true position in her securities account; and
- forged the client’s signature to open an investment account and transferred money from her securities accounts at Sincere Securities to the investment account for trading gold commodities without her knowledge and authority (Note 3).
The SFC considers that Shum’s dishonesty calls into question his fitness and properness to be a licensed person and decided to ban him for life (Note 4).
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Notes:
- Shum was licensed to carry on Type 1 (dealing in securities) regulated activities under the Securities and Futures Ordinance. He was accredited to Sincere Securities between 30 June 2010 and 27 May 2015. Shum is currently not licensed by the SFC.
- Sincere Securities had compensated the client for her losses suffered as a result of Shum’s misconduct.
- Shum opened an investment account for his client at Allied Victory Gold and Silver Investment Limited, an associate company of Sincere Securities, without her knowledge and authority.
- The matter has been reported to the Police.
