The Securities and Futures Commission (SFC) has reprimanded Mr Wu Hon Cheung, a former account executive of Sun Hung Kai Investment Services Limited (Sun Hung Kai), and fined him $50,000 for failing to keep proper records of a client’s order instructions, in breach of the Code of Conduct (Notes 1 & 2).
The SFC found that between August 2014 and January 2015, Wu failed to use Sun Hung Kai’s tape-recorded phone to record instructions as required by the Code of Conduct after receiving order instructions from a client on his mobile phone. Wu also failed to record the order details and order receipt time for some of the client orders in his manual trade blotter in accordance with Sun Hung Kai’s internal requirements (Note 3).
In deciding the disciplinary action against Wu, the SFC took into account all relevant circumstances, including Wu’s otherwise clean disciplinary record.
The SFC stresses that keeping proper records of client orders, which helps to protect the interests of clients, is a fundamental duty expected of licensed individuals.