The Securities and Futures Commission (SFC) in Hong Kong has decided to suspend the licensing of a former representative associated with Shanxi Securities International Limited for a period of seven months, effective from October 28, 2025, until May 27, 2026.
This suspension stems from an inquiry into a suspected ramp-and-dump scheme. During the investigation, it was discovered that between July 10, 2019, and December 10, 2019, the individual in question accessed a client’s securities account without proper authorization. Over the course of this time, they placed a total of 945 orders on behalf of the client through the internet, doing so without any valid written consent.
The SFC highlighted that this behavior resulted in significant concerns for the brokerage, as it undermined their capability to verify the identity of the party responsible for order instructions. It also hindered the brokerage’s ability to maintain an appropriate audit trail of client instructions. This lack of transparency poses a serious risk of unauthorized trading for clients, and it increases the potential for disputes regarding trades. Moreover, such actions could contribute to market misconduct by obscuring the real source of trades, complicating the tracing and monitoring of any suspicious trading activities.
In determining the length of the suspension, the SFC considered several factors. Notably, they looked at the frequency and duration of the misconduct, emphasized the need to deter similar behavior across the industry, and took into account the representative’s previously clean disciplinary record.
This disciplinary action underscores the regulator’s commitment to ensuring that all representatives and licensed entities adhere to the highest standards of conduct, particularly in safeguarding client interests and maintaining integrity in the trading environment.