SFC in Hong Kong bans former fund manager for life

The SFC website reported that it had banned Mr Ryan Fong (formerly from HSZ in Hong Kong) for life following his conviction in relation to insider dealing.  Mr Fong was previously sentenced to 12 months imprisonment in one of the SFC's early prosecutions of financial professionals involved in insider dealing.

The SFC report was:

The Securities and Futures Commission (SFC) has banned Mr Ryan Fong Yen-hwung, a former portfolio fund manager at HSZ (Hong Kong) Ltd (HSZ), from re-entering the industry for life (Note 1).

The disciplinary action follows Fong’s conviction for insider dealing in July 2009 at the District Court (Note 2). Fong was sentenced to 12 months’ imprisonment and ordered to pay a fine of $1,372,218.

The SFC’s investigation found that in 2005, Fong received confidential and price sensitive information about a proposed takeover by JCDecaux Pearl & Dean Ltd of the controlling interests in Media Partners International Holdings Inc (Media Partners) from Mr Allen Lam Kar Fai, a former director of investment banking at CLSA Equity Capital Markets Ltd.

Fong took advantage of the information and purchased Media Partners shares which he then sold at a profit after the announcement of the transaction was made to the public. The misconduct involved coded emails between Fong and Lam designed to cover up the wrongdoing and prevent detection.

End

Notes:

1. Fong was licensed under the Securities and Futures Ordinance to carry on Type 4 (advising on securities) and Type 9 (asset management) regulated activities and was accredited to HSZ from 2004 to 2006. His licence was revoked in March 2006 and he does not currently hold an SFC licence.
2. Please see SFC press releases dated 7 July 2009 and 20 July 2009.