On December 3, 2025, the Securities and Futures Commission ("SFC") suspended Loretta Lee Si Kar, a responsible officer ("RO") and director of Tung Tai Securities Company Limited (Tung Tai), for three months and two weeks following the firm's unauthorized sales of client securities and transfers of client funds between September 2019 and February 2020. The SFC attributed the failures to Lee's neglect of her duties and ordered Tung Tai to make compensations and strengthen its internal controls.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
SFO, s. 300: Fraudulent & Deceptive Conduct Provisions to Combat Insider Dealing and Other Misconduct
The Court of Appeal decision in Securities and Futures Commission v. Young Bik Fung confirmed that insider dealing as well as other market misconduct could be r
D&O Insurance in Hong Kong: What To Know In The Event Of SFC Enforcement Action
Enforcement action by the Securities and Futures Commission (“SFC”) against officers of companies listed on the Stock Exchange of Hong Kong is becoming increasi
SPOTLIGHT ON
FAMILY OFFICES
On December 3, 2025, the Securities and Futures Commission ("SFC") imposed a three-month suspension on Ms. Loretta Lee Si Kar, who serves as a responsible officer ("RO"), manager-in-charge ("MIC"), and director of Tung Tai Securities Company Limited (Tung Tai). This disciplinary action is part of the SFC’s broader sanctions against Tung Tai for its failures in unauthorized sales of client securities and transfers of client funds between September 2019 and February 2020.
The SFC attributes Tung Tai’s failures primarily to Ms. Lee’s neglect of her duties as an RO and a senior manager during the relevant period. Investigations revealed that Tung Tai, following instructions from an unauthorized email address, sold shares in clients' accounts and transferred funds amounting to US$3,301,740 to offshore accounts not designated by the clients. Additionally, multiple banks rejected telegraphic transfers, indicating potential fraud, but Tung Tai did not act on these alerts.
The SFC found that Tung Tai failed to implement adequate safeguards for client assets and establish effective internal controls to protect against theft and fraud. Ms. Lee’s disciplinary action takes into account the seriousness of Tung Tai’s failures, her cooperation during the investigation, and her clean disciplinary record.
Ms. Lee is licensed to carry out Type 1 and Type 4 regulated activities under the Securities and Futures Ordinance and has been accredited to Tung Tai as a RO since September 2004. She held positions as MIC for risk management and overall management oversight between 2017 and 2023.
In addition to the disciplinary action against Ms. Lee, Tung Tai was fined HK$900,000 for its failures. Since the incident, Tung Tai has made compensation to the affected client and taken steps to enhance its procedures for order placement and trade execution. The firm has also engaged an independent reviewer to assess its internal controls regarding client asset safeguards.
View the full article:Source
