SFC Suspends Chan Kin Pong Kimball for Aiding and Abetting Unlicensed Activities

The SFC has suspended Mr Chan Kin Pong Kimball, a licensed representative of Ho Fung Shares Investment Limited, for six weeks from 5 September 2006 to 16 October 2006 for aiding and abetting unlicensed activities. The suspension is the result of a settlement between Chan and the SFC (Note 1).

The suspension follows an SFC inquiry in which Chan was found to have aided and abetted Mr Ng Yuk Chan Michael, who was not licensed by the SFC, to set up a website and publish advice on trading in Hang Seng Index futures contracts in the paid section of the website. Chan acted as a channel of communication for the website’s technical and administrative matters, and an intermediary for the transfer of funds relating to the website between Ng and other parties. Ng was convicted of unlicensed investment advising in July 2005 (Note 2).

The SFC concludes that Chan has been guilty of misconduct and that his fitness and properness has been called into question.

The SFC considers the settlement to be in the interest of the investing public and in the public interest. In considering the penalty, the SFC has taken into account all the circumstances of the case, including the following:

• Chan frankly admitted his wrongdoing during the investigation;

• Chan was remorseful and fully co-operated in settling the disciplinary action;

• Chan received no benefit from assisting Ng’s unlicensed activities; and

• Chan had a clean disciplinary record.

Mr Eugène Goyne, an SFC Senior Director of Enforcement, said: “The licensing system is fundamental to the regulatory regime. Investors are entitled to be served by licensed representatives. The SFC will take regulatory action against those who engage in unlicensed activities and anyone aiding and abetting them.”

Ends

Notes:

1. Chan is licensed under the Securities and Futures Ordinance to carry on Type 1 (dealing in securities) regulated activity. He is a licensed representative accredited to Ho Fung Shares Investment Limited.

2. Please see SFC press release dated 7 July 2005.