On 23^rd November 2009 The Securities and Futures Commission (SFC) reported that it had banned Mr Allen Lam Kar Fai from re-entering the industry for life. This follows the revoking of his licence in 2006.  (Note 1).

The disciplinary action follows Mr Lam’s conviction for insider dealing in July 2009 at the District Court (Note 2). He was sentenced to six months’ imprisonment and ordered to pay a fine of HK$69,000.

Mr Lam was investigated after he gave confidential and price sensitive information to a fund manager before it was public. The fund manager, Ryan Fong,  then took advantage of the information. Mr Fong has been sentenced to 1 year imprisonment and order to pay a fine of nearly HK$1.4 million. There has been no comment on any action taken by SFC to penalise or ban Mr Fong.

Mr Mark Steward, the SFC’s Executive Director of Enforcement  said “The SFC expects licensees will safeguard confidential, price sensitive information, not exploit it. Lam’s conduct violated the trust expected of him as a licensee. There is no place for licensees who misuse confidential information and enter into arrangements like this to deceive the market,”

Notes:

1. Lam was licensed under the Securities and Futures Ordinance to carry on Type 6 (advising on corporate finance) regulated activity and had been accredited to CLSA Equity Capital Markets Ltd (CLSA) since 2001. His licence was revoked in June 2006 and he does not currently hold an SFC licence.
2. Please see SFC press releases dated 7 July 2009 and 20 July 2009.

For the full details please use the following Mr Allen Lam Kar Fai