On October 2, 2025, the Securities and Futures Commission ("SFC") suspended Joey Lo Wai Hon for four months for failing to manage credit risks and identify suspicious trading patterns at MTF Securities Limited. The suspension follows a series of breaches in the Code of Conduct and other regulatory requirements. Lo was part of MTF's senior management and was responsible for granting excessive trading limits to clients.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On October 2, 2025, the Securities and Futures Commission ("SFC") suspended Mr. Joey Lo Wai Hon, a former responsible officer ("RO") of MTF Securities Limited ("MTF"), for four months, from September 30, 2025, to January 29, 2026, for inadequate management of credit risks and failure to identify and report suspicious trading patterns of clients.
The SFC’s investigation uncovered several breaches by MTF, including the absence of effective policies to manage credit risks and a deficient system for identifying and reporting suspicious trading activities, in violation of the Code of Conduct and other regulatory requirements.
The SFC’s findings reveal that MTF, upon the opening of three new accounts by clients who deposited only $10,000, granted trading limits of $4 million to $5 million without proper due diligence, at the behest of MTF’s substantial shareholder. Additionally, these clients utilized their trading limits to engage in transactions inconsistent with their financial status, indicative of potential market misconduct and money laundering.
MTF failed to detect and follow up on these suspicious transactions or ensure their timely reporting to the relevant authorities, thus exacerbating the risks and potential damage to market integrity.
In assessing the disciplinary sanction against Lo, the SFC considered MTF’s serious failures, the need to maintain public confidence in the market, and the cooperative manner in which Lo addressed the SFC’s concerns, leading to the four-month suspension.
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