Hong Kong’s financial regulator, the Securities and Futures Commission (SFC) has made an announcement today. This announcement pertained to one Mung Wai Sun, and his subsequent suspension for nine months. Sun was a former licensed representative of Ewarton Securities, and has been suspended from the 18th of September, 2020, to the 17th of June, 2021.
This disciplinary action came as a result of the SFC investigating the matter, finding that Mung had effected transactions within a client’s account. He did these transactions without the written authorization of his respective client, and did so with a high level of discretion. This occurred during May of 2017 and March of 2018.
Alongside this, the SFC had concluded within its investigations that Mung had subsequently failed in ensuring that the transactions he does on his client’s behalf were done with priority over his own accounts. This occurred within the same time frame, as well.
The Exact Details
As the regulator revealed all the transactions done within this time frame, it was discovered that orders placed for Mung’s account were ahead of the orders of his clients for the exact same securities and the same direction placed. These orders occurred within 30 seconds ahead of the client’s orders, and occurred with a minimum of 542 transactions.
Of those transactions, 133 ended up benefiting Mung’s personal account more than it would have prior. These orders made by Mung were capable of executing the sale or purchase of more shares at the same price as the client, or the orders were executed at a better price than that of the client.
With this information in mind, the SFC has included that Mung had breached the Code of Conduct by his conduct.
Always A Chance Of Redemption
In its statement, the SFC made it clear that it had taken into account an array of factors. This, as the statement specifies, includes his duration of misconduct, his clean disciplinary record, as well as his alleged remorse about the matter at large.
The amount of money across the global finance industry is hard to fathom for most people. As such, criminal actions within the sector isn’t a possibility, but more of an inevitability. Those that typically partake in these sorts of schemes will, more often than not, continue with what works until they’re caught. With any luck, Mung has learned a harsh lesson, and will stick to the right side of the law in the future.