Hong Kong’s SFC fines and bans ex-CGIS director Wang Canfor 30 months
The Securities and Futures Commission (SFC) has banned Mr Wang Can, a former licensed representative of China Galaxy International Securities (Hong Kong) Co., Limited (CGIS), for 30 months for misconduct.
Wang was licensed under the Securities and Futures Ordinance to carry on dealing in securities and advising on corporate finance regulated activities and was accredited to CGIS from 9 April 2013 to 6 February 2016. Wang is banned from 16 May 2019 to 15 November 2021.
The SFC found that Wang asked his friend to open a securities account in September 2014 and conducted personal trading in that account for at least nine months.
Wang became privy to information regarding a proposed acquisition of Linmark Group Limited (Linmark) in November 2014 when he assisted CGIS to prepare pre-engagement documentation for a potential client. He went on to purchase shares of Linmark through his friend’s account and sold them two days after Linmark announced the proposed acquisition on 3 December 2014 and made a profit of $7,800.
Wang breached CGIS’ staff dealing policy by failing to disclose to his then employer his personal trading activities and beneficial interests in his friend’s account. He also breached CGIS’s staff dealing policy in that employees are prohibited from trading on the basis of price sensitive information or confidential information related to its clients or potential clients.
Wang was fined $7,800, equivalent to the profits that he gained from trading in the shares of Linmark.
In deciding the sanction, the SFC took into account all relevant circumstances, including Wang’s remorse and willingness to accept the SFC’s disciplinary action.