Hong Kong SFC Bans Convoy Asset Management Representative for 10 Years for Stock Market Manipulation Arranging 10 Clients & Friends to Buy Shares to P
26th April 2023 | Hong Kong
The Hong Kong Securities & Futures Commission (SFC) has banned former Convoy Asset Management representative (Peter Law Chi Kin) for 10 years for a stock market manipulation scheme arranging 10 clients & friends to buy Hong Kong listed company shares to push up prices. The Hong Kong SFC also imposed an additional fine of $68,100 for profiting from the scheme with clients suffering substantial losses. Hong Kong SFC: “From June to July 2016, Law was persuaded by his colleague Mr Wong Kwun Shing to join the stock manipulation scheme. He went on to solicit and arrange for 10 of his clients and friends to buy the shares of a company listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited (Company A) from the manipulators involved in the scheme. His clients agreed to hold onto the shares for one to three months during which the manipulators would purportedly push up the share price. They also agreed to sell them only with his permission in return for cash rebates of 12% to 15% of the transaction value. However, his clients ended up suffering substantial losses because they were not allowed to offload their shares before the share price of Company A collapsed. The SFC also found that Law coordinated with Wong to arrange the transactions through which his clients bought the shares from the manipulators. On each occasion, Wong would confirm the date, time, size and price with the manipulators in advance and inform Law of the same. Law would then give detailed instructions to his clients to ensure that their bid orders would match the manipulators’ ask orders. After the transaction was completed, Wong would collect the cash rebates from the manipulators and pay Law for onward distribution to his clients. By doing so, Law received $535,500 from the manipulators for his involvement in the scheme, but he did not disclose to his clients that he would receive commission for soliciting them to buy the shares of Company A. Furthermore, Law told his clients that the scheme was riskless, and he repeatedly gave them reckless advice. This included dissuading his clients from offloading their shares when the share price of Company A began to fall and reassuring them that they would recoup their losses or even make a profit by holding onto the shares. As a result, his clients missed the opportunities to mitigate their losses. On Law’s recommendation, two clients tapped the overdraft facilities offered by a brokerage firm to fund their purchase of the shares of Company A. However, he did not explain to them the risks that they might be required to deposit extra cash into their accounts should the market value of their shares fall. The shares of the two clients were force sold by the brokerage firm when the share price of Company A plummeted.” See below for full Hong Kong SFC statement.
“ Hong Kong SFC Bans Convoy Asset Management Representative for 10 Years for Stock Market Manipulation Arranging 10 Clients & Friends to Buy Shares to Push Up Prices, Additional Fine of $68,100 for Profiting from Scheme & Clients Suffered Substantial Losses “
- Article continues below - Web links may be disabled on mobile for security. Please click on desktop. Quick Links, Ads & Announcements Caproasia Access | Events | Summits | Register Events | The Financial Centre The 2023 Investment Day | 2023 Family Office Summits | Family Office Circle New to Caproasia Sign Up | Subscribe | Register Events The 2023 Investment Day | 6/6 HK & 13/6 SG Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Taking place on 6th June 2023 in Hong Kong, 13th June 2023 in Singapore. Visit | Register here
Hong Kong SFC Bans Convoy Asset Management Representative for 10 Years for Stock Market Manipulation Arranging 10 Clients & Friends to Buy Shares to Push Up Prices Hong Kong, Asia’s leading financial centre
SFC bans Peter Law Chi Kin for 10 years and fines him $535,500
26th April 2023 – The Securities and Futures Commission (SFC) has banned Mr Peter Law Chi Kin, a former licensed representative of Convoy Asset Management Limited (CAML), from re-entering the industry for 10 years from 26 April 2023 to 25 April 2033 for taking part in a stock manipulation scheme. The SFC also fined Law $535,500, equivalent to the profit that he gained from participating in the scheme (Note 1).
From June to July 2016, Law was persuaded by his colleague Mr Wong Kwun Shing to join the stock manipulation scheme. He went on to solicit and arrange for 10 of his clients and friends to buy the shares of a company listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited (Company A) from the manipulators involved in the scheme. His clients agreed to hold onto the shares for one to three months during which the manipulators would purportedly push up the share price. They also agreed to sell them only with his permission in return for cash rebates of 12% to 15% of the transaction value. However, his clients ended up suffering substantial losses because they were not allowed to offload their shares before the share price of Company A collapsed (Notes 2 & 3).
The SFC also found that Law coordinated with Wong to arrange the transactions through which his clients bought the shares from the manipulators. On each occasion, Wong would confirm the date, time, size and price with the manipulators in advance and inform Law of the same. Law would then give detailed instructions to his clients to ensure that their bid orders would match the manipulators’ ask orders. After the transaction was completed, Wong would collect the cash rebates from the manipulators and pay Law for onward distribution to his clients.
By doing so, Law received $535,500 from the manipulators for his involvement in the scheme, but he did not disclose to his clients that he would receive commission for soliciting them to buy the shares of Company A.
Furthermore, Law told his clients that the scheme was riskless, and he repeatedly gave them reckless advice. This included dissuading his clients from offloading their shares when the share price of Company A began to fall and reassuring them that they would recoup their losses or even make a profit by holding onto the shares. As a result, his clients missed the opportunities to mitigate their losses.
On Law’s recommendation, two clients tapped the overdraft facilities offered by a brokerage firm to fund their purchase of the shares of Company A. However, he did not explain to them the risks that they might be required to deposit extra cash into their accounts should the market value of their shares fall. The shares of the two clients were force sold by the brokerage firm when the share price of Company A plummeted.
Law’s conduct fell far short of the standards set out in the Code of Conduct for Persons Licensed by or Registered with the SFC, and casts serious doubts on his character, reliability and ability to carry on regulated activities competently, honestly and fairly. The SFC considers that he is not fit and proper to be a licensed person (Note 4).
In determining the sanction against Law, the SFC has taken into account all relevant circumstances, including:
- Law’s misconduct was deliberate, serious and blatantly dishonest and led to significant losses for his clients;
- a strong deterrent message to the industry that the SFC will not tolerate such misconduct;
- Law’s admission of his involvement in the scheme and willingness to accept disciplinary sanctions, as well as his remorse; and
- his otherwise clean disciplinary record.
Notes:
A copy of the Statement of Disciplinary Action is available on the SFC website
Managing $20 million to $3 billion. Investing $3 million to $300 million. For Investment Managers, Hedge Funds, Boutique Funds, Private Equity, Venture Capital, Professional Investors, Family Offices, Private Bankers & Advisors, sign up today. Subscribe to Caproasia and receive the latest news, data, insights & reports, events & programs daily at 2 pm. Join Events & Find Services Join Investments, Private Wealth, Family Office events in Hong Kong, Singapore, Asia-wide. Find hard-to-find $3 million to $300 million financial & investment services at The Financial Centre | TFC. Find financial, investment, private wealth, family office, real estate, luxury investments, citizenship, law firms & more. List hard-to-find financial & private wealth services. Have a product launch? Promote a product or service? List your service at The Financial Centre | TFC. Join interviews & editorial and be featured on Caproasia.com or join Investments, Private Wealth, Family Office events. Contact us at [email protected] or [email protected] Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Quick Links Caproasia Access | Events | Summits | Register Events | The Financial Centre The 2023 Investment Day | 2023 Family Office Summits | Family Office Circle 2021 Data Release 2020 List of Private Banks in Hong Kong2020 List of Private Banks in Singapore 2020 Top 10 Largest Family Office2020 Top 10 Largest Multi-Family Offices2020 Report: Hong Kong Private Banks & Asset Mgmt - $4.49 Trillion2020 Report: Singapore Asset Mgmt - $3.48 Trillion AUM For Investors | Professionals | Executives Latest data, reports, insights, news, events & programs Everyday at 2 pm Direct to your inbox Save 2 to 8 hours per week. Organised for success Register Below For CEOs, Heads, Senior Management, Market Heads, Desk Heads, Financial Professionals, Investment Managers, Asset Managers, Fund Managers, Hedge Funds, Boutique Funds, Analysts, Advisors, Wealth Managers, Private Bankers, Family Offices, Investment Bankers, Private Equity, Institutional Investors, Professional Investors Get Ahead in 60 Seconds. Join 10,000 + Save 2 to 8 hours weekly. Organised for Success. Sign Up / Register You are:
InvestorProfessionalFamily OfficeExecutive
Select:
TrialSubscriptionMembershipEvents
Interests / Events / Summits / Roundtables / Networking:
Professional InvestorPrivate WealthFamily OfficePrivate BankingWealth ManagementInvestmentsAlternativesPrivate MarketsCapital MarketsESG & SICEO & EntrepreneursTax, Legal & RisksHNW & UHNWs Insights
Your Name*
Company*
Job Title*
Email 1 (Work / Personal)*
Email 2 (Work / Personal)
Country
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
- Professional Investor
- Family Office
- HNW Partnership
- Family Office Circle
- Family Office Networking
- Family Office Roundtable
- The Family Office Summit
- 28th March 2023 - Hong Kong
- 4th April 2023 - Singapore
- April 2023 - Virtual
- 6th June 2023 - Hong Kong
- 13th June 2023 - Singapore
- Sept 2023 - Hong Kong
- Oct 2023 - Singapore
- Oct 2023 - Hong Kong
- Visit: The Investment Day | Register: Click here
- The Investment Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
Owl Media Group takes pride in providing social-first platforms which equally benefit and facilitate engagement between businesses and consumers and creating much-needed balance to make conducting business, easier, safer, faster and better. The vision behind every platform in the Owl Media suite is to make lives better and foster a healthy environment in which parties can conduct business efficiently. Facilitating free and fair business relationships is crucial for any thriving economy and Owl Media bridges the gap and open doors for transparent and successful transacting. No advertising funds influence the functionality of our media platforms because we value authenticity and never compromise on quality no matter how lucrative the offers from advertisers may seem.