Abstract：Hong Kong’s Securities and Futures Commission (SFC) has suspended the licence of Mr. Wong Chi Fai, a former licensed representative of Fulbright Securities Limited and Fulbright Futures Limited, for 27 months over serious misconduct involving undisclosed personal trading and false declarations.
The suspension took effect immediately and will run until 22 April 2028, the SFC said.
Hong Kongs Securities and Futures Commission (SFC) has suspended the licence of Mr. Wong Chi Fai, a former licensed representative of Fulbright Securities Limited and Fulbright Futures Limited, for 27 months over serious misconduct involving undisclosed personal trading and false declarations.
The suspension took effect immediately and will run until 22 April 2028, the SFC said.
Undisclosed Trading Uncovered in Ramp-and-Dump Investigation
The disciplinary action arose from an SFC investigation into a suspected ramp-and-dump scheme. During the probe, the regulator found that, without the knowledge of Fulbright, Wong conducted approximately 1,300 securities transactions with an aggregate value of HK$670 million through a securities account held in the name of his relative at another brokerage firm.
The SFC determined that Wong had a beneficial interest in and control over the account but failed to disclose this to Fulbright. He also repeatedly made false declarations, stating that he had no beneficial interest in any external securities accounts.
Extensive Personal Trading Without Approval
The SFC further found that between 1 January 2015 and 31 December 2018, Wong carried out approximately 10,000 personal trades with a total value of HK$2.8 billion through a securities account held in the name of his relative at Open Securities Limited (OSL) while employed by the firm.
These trades were conducted without obtaining the required prior approval. To conceal his activities, Wong made several false declarations between May 2011 and December 2018, denying his financial interest in and control over the account.
Circumvention of Internal Controls
According to the SFC, Wongs conduct deliberately circumvented the staff dealing and personal account trading policies of both Fulbright and OSL. As a result, the firms were prevented from effectively monitoring his personal trading activities and assessing potential conflicts of interest.
The regulator concluded that Wong‘s actions were willful and dishonest, raising serious concerns about his fitness and propriety to remain a licensed person under Hong Kong’s regulatory framework.
Factors Considered in Sanction
In determining the length of the suspension, the SFC said it considered several factors, including:
- The misconduct persisted for nearly 10 years
- The scale and frequency of Wongs personal trading, driven largely by day trading and short-term margin trading
- Wongs cooperation with the SFC during the investigation
- His otherwise clean disciplinary record
Regulatory Reminder
The SFC reiterated that licensed persons are required to make full and honest disclosures of personal trading activities and beneficial interests in securities accounts. Failure to do so undermines market integrity and the effectiveness of firms internal controls and will result in serious disciplinary action.
The case serves as a reminder that Hong Kong regulators continue to closely scrutinize personal account dealing and conflicts of interest within licensed corporations.
