SFC Bans Fok Chi Kin For Eight Months

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The Securities and Futures Commission (SFC) has banned Mr Fok Chi Kin from re-entering the industry for eight months from 20 June 2017 to 19 February 2018 (Note 1).

Fok was a vice president of JPMorgan Funds (Asia) Limited (JPFL) providing sales support before he tendered his resignation on 8 March 2016.  He left JPFL on 10 April 2016 and joined BNP Paribas Investment Partners Asia Limited (BNP) as a client relationship manager the following day (i.e. 11 April 2016).

An internal investigation by JPFL revealed Fok transferring proprietary information and client data of JPFL without permission on several occasions prior to and immediately after his departure from JPFL.

Specifically, Fok was found to have:

• sent a sales presentation regarding a JPFL product from his JPFL email to his personal email 10 days before he tendered his resignation, and then forwarded it within the same day to a former colleague, whose employer was not a client of JPFL.
• sent a client list from his JPFL email account to his personal email account about two and a half weeks before his last working day at JPFL.  The client list contained personal data of approximately 2000 gatekeepers/relationship managers associated with over 80 intermediaries and distributors of JPFL’s products.
• forwarded the client list to his email address at BNP on the first day of work at his new employer and saved the client list on his desktop computer at his new office.
• used the information in the client list to call eight distributors of JPFL informing them of his change of employment.

JPFL reported the matter to the SFC and informed BNP of Fok’s conduct in May 2016.  BNP terminated Fok’s employment in June 2016.

Fok’s conduct was in breach of JPFL’s internal policies, the Personal Data (Privacy) Ordinance and the SFC’s Code of Conduct (Notes 2 & 3).

In deciding the sanction, the SFC took into account all relevant circumstances, including Fok’s admission of his misconduct and his otherwise clean disciplinary record.

Notes:

1. Fok was licensed under the Securities and Futures Ordinance to carry on Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.  He was accredited to JPFL to carry on Type 1 (dealing in securities) regulated activities from 2 August 2011 to 8 April 2016 and BNP Paribas Investment Partners Asia Limited to carry on Types 1 (dealing in securities) and 4 (advising on securities) regulated activities from 19 April to 31 May 2016.  Fok is currently not licensed by the SFC.
2. Data Protection Principle 3 in Schedule 1 of the Personal Data (Privacy) Ordinance provides that personal data shall not, without the prescribed consent of the data subject, be used for a new purpose, i.e. any purpose other than the purpose for which the data was to be used at the time of the collection of the data or a purpose directly related to such purpose.
3. General Principle 1 (honesty) of the Code of Conduct for Persons Licensed by or Registered with the SFC (Code of Conduct) provides that a licensed person should conduct business activities honestly, fairly, and in the best interest of its clients and the integrity of the market.  Paragraph 12.1 of the Code of Conduct provides that a licensed person should comply with the law, rules, regulations and codes administered or issued by the SFC and the requirements of any regulatory authority which apply to the licensed person.

Source: SFC 

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