The Hong Kong Securities and Futures Commission (SFC) announced today that it has banned Jia Zhen for a period of 10 months over carrying out transactions in a client’s account without obtaining the proper written authorization – such as a power of attorney (POA) or in the case of SFC rules a discretionary broking authorization.
The regulator said that the former account executive was a Marketing Development Manager of China Merchant Securities (HK) Co. Limited (CMSHK) and is banned from entering the industry effective from February 20th 2016 through to December 19th of this year, and cited SFC’s conduct rules notes 1 and 2.
The SFC found that between February 2010 and June 2011, Jia entered into a private agreement with a client that opened an account at CMSHK and Jia carried out transactions with the client’s account on a discretionary basis without first obtaining proper written consent.
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The regulator noted that because the client’s account wasn’t properly designated as a discretionary account, it wasn’t afforded the related protections from the firm (citing section 7.1(c) and (d) of the code of conduct rules), including proper monitoring and firm supervision.
Jia is not currently licensed by the SFC, although during the period in question and from May 11th 2010 he maintained a type 1 license dealing in securities under the Securities and Futures Ordinance, held under the broker CMSHK until July 16th 2012. Further details on the disciplinary action are posted on the SFC website.