The regulator imposed a 12-month ban on He, prohibiting his participation in any regulated activity.
The regulator said that between August 2010 and April 2011, “He acted as a nominee and was complicit in a number of suspicious transactions at Ping An which should have been reported to the SFC and the Joint Financial Intelligence Unit in a timely manner but were not”.
The investigation also found, among other things, that He failed to ensure Ping An had sufficient anti-money laundering internal control procedures and “effective procedures to protect client assets in effecting payments”.
“He, who was the most senior person at Ping An and in a position of authority in managing its business at the relevant period, tried to abdicate responsibility and offload blame to subordinates when these deficiencies were uncovered.”
The firm has since removed He from his position and appointed a new CEO.
Ping An is licensed to deal and advise on securities, as well as carry out asset management activities.
In July, the firm was reprimanded and fined HK$6 million ($770,000) over the internal control deficiencies and other matters.
China’s market regulator, the China Securities Regulatory Commission, assisted in the SFC in the investigation of the case.
