The Securities and Futures Commission ("SFC") has banned Mr. Law Man Wai from re-entering the industry for three years due to unauthorized trading activities. This includes using accounts belonging to his sister and friend for personal trading and executing wash and matched trades to avoid margin calls.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On June 19, 2025, the Securities and Futures Commission ("SFC") issued a prohibition order preventing Mr. Law Man Wai from re-entering the financial industry for a period of three years, effective from June 19, 2025, to June 18, 2028. This prohibition stems from an extensive investigation conducted by the SFC, which uncovered significant irregularities in Law's trading activities between March and September 2023.
The inquiry revealed that Law had utilized accounts belonging to his sister and a friend for personal trading purposes, executing a total of 109 matched or wash trades in nine different stocks. The primary objective behind these trades was to circumvent potential margin calls by avoiding forced liquidation. Furthermore, Law contravened the Central Investment Scheme Limited ("CISL") staff dealing policy by intentionally concealing his beneficial interests and personal trades in the aforementioned accounts. Moreover, he impersonated his friend to place orders for the latter's account at another brokerage firm.
The SFC concluded that Law's conduct raised serious concerns regarding his fitness and suitability for licensing, notwithstanding the absence of substantial evidence to indicate manipulative intent. His otherwise clean disciplinary record did not mitigate the severity of his actions. Consequently, the SFC determined that a three-year prohibition was appropriate to ensure the integrity of the financial markets.
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