Following his conviction for holding himself out as carrying on a business in asset management without a license from the Securities and Futures Commission (SFC), Hong Kong’s Eastern Magistrates’ Court has sentenced Yau Ka Fai to 240 hours of community service.
Whilst unlicensed by the SFC, Yau represented to investors that he was the manager of a fund known as Tai Chi Hedge Fund and received commission for his service between September 2011 and November 2015. The fund invested in stocks and futures contracts, amongst other things.
Under the Securities and Futures Ordinance (SFO), Asset management is a regulated activity. Under section 114(1)(b) of the Securities and Futures Ordinance (SFO), it is an offense to hold oneself out as carrying on a business in a regulated activity without a license from the SFC. Yau was not licensed with the SFC in any capacity or in relation to any regulated activity.
Yau had pleaded guilty to the charges in January 2020 and the case was adjourned to 16 January 2020, and subsequently further adjourned for sentencing.
The SFC reminds investors to check the SFC’s Public Register of Licensed Persons and Registered Institutions on the SFC’s website (www.sfc.hk) before investing to ensure that the parties they deal with are licensed.
Date: 29 April 2020
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