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Compliance & Regulation

SFC bans Christopher Tse for 12 months

The Securities and Futures Commission has banned Christopher Tse, a former research analyst at RHB Securities in Hong Kong, from re-entering the industry for 12 months, starting from January 31st 2020.

The SFC investigation found that Tse conducted trades through his father's securities trading account held at another brokerage between August 2013 and October 2015 without informing his then employer, RHB Securities Hong Kong (RHBSHK), and traded in a stock on RHBSHK's restricted list on two occasions.

The evidence shows that some of the trades conducted by Tse through his father's account between November 2013 and July 2015 were: (a) in a manner contrary to his recommendations; and (b) in the shares of companies covered in some of his research reports within 30 days prior to or three days after the issue of the reports.  Moreover, Tse failed to disclose his financial interests in his father's account in relation to four companies in a number of research reports between September 2013 and June 2015.

By doing so, Tse not only breached RHBSHK's internal policies and the Code of Conduct, but also seriously compromised his role as a research analyst and called into question the objectivity of the research reports he prepared.  As such, the SFC is of the view that he is not a fit and proper person to be licensed.