The Securities and Futures Commission ("SFC") suspended Mr. Pun Hong Hai for 10 months, from 11 June 2025 to 10 April 2026, for failing to discharge his duties as a former responsible officer of Freeman Commodities Limited, including inadequately managing risks and monitoring suspicious trading patterns.
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") suspended Mr. Pun Hong Hai, former responsible officer ("RO"), chief executive officer, and manager-in-charge of overall management oversight of Freeman Commodities Limited (Freeman), for 10 months, from 11 June 2025 to 10 April 2026, due to supervisory failures.
The SFC found that Pun failed to discharge his duties as an RO and a member of the senior management of Freeman, thereby failing to ensure the company maintained appropriate standards of conduct and adhered to proper procedures. This failure included inadequate risk management associated with Freeman’s business.
Specifically, Pun’s failures were related to the use of customer-supplied systems ("CSSs") by Freeman’s clients for placing orders and the company’s monitoring of suspicious money movements and trading patterns in client accounts between June 2017 and December 2018. The CSSs were connected to Freeman’s broker-supplied systems ("BSSs") through an application programming interface.
Pun was licensed under the Securities and Futures Ordinance to carry on various regulated activities, including Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 4 (advising on securities), Type 5 (advising on futures contracts), and Type 9 (asset management). He was accredited to Freeman and approved to act as its RO from 29 November 2016 to 6 September 2021. Pun is currently not accredited to any licensed corporation.
The SFC's disciplinary action against Pun is related to its ongoing disciplinary action against a related entity, and details of that disciplinary action will not be disclosed until the conclusion of the ongoing action.
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