Hong Kong’s Securities and Futures Commission (SFC) has imposed a lifetime ban on a former Associate Director of a multinational investment bank and financial services company from re-entering the city’s financial industry.
The SFC now considers the former Associate Director as not a “fit and proper” person to be licensed or registered to perform regulated activities within Hong Kong’s financial markets.
The Court of First Instance convicted the perpetrator on two counts of theft and two counts of “dealing with property known or believed to represent proceeds of an indictable offence”.
While overseeing a project within the financial institution (FI) to compensate clients who were overcharged in previous transactions, the perpetrator used the FI’s systems to redirect funds to his own account. At least 46 payments, totalling more than US$1.8 million, were identified.
See the SFC’s press release about the matter.
The SFC published five guides last year on licensing and competency requirements for family offices, private equity firms, hedge fund managers and overseas and mainland professionals.
The regulator makes clear mention within its guides of granting licences only to persons who meet the fit and proper requirements. To carry out regulated activities in Hong Kong, the SFC requires licensees to meet fit and proper criteria and competence assessments that include academic and professional qualifications, industry experience and qualifications, and the Hong Kong regulatory framework papers.
In September 2024, the SFC also published two new quick reference guides to assist visiting and returning professionals in understanding its licensing regime, complementing the five quick reference guides it published in 2023.
See the SFC’s quick reference guides to licensing requirements.
Every financial firm needs a robust system of confirming all staff are deemed “fit and proper” for the requirements of their roles—particularly at the most senior levels.
MCO’s complete compliance management suite enables firms to ensure fit and proper regulatory requirements, identify red flags in electronic communications (ecomms), monitor and take action on improper trading activity, manage conflicts of interest, and much more.
To ensure that staff at all levels are deemed “fit and proper” for the requirements of their roles, MCO offers a streamlined Representative Registrations and Licensing (RRL) module. RRL integrates with internal systems, including HR, to provide assurance that licensing and continuing education requirements are kept up to date across your firm. It also manages ongoing renewals, qualifications, exams, and continuing education for all staff.
Learn more about how award-winning regulatory technology can help your firm uphold its regulatory obligations regarding fit and proper requirements—and protect itself from reputational harm.