The Securities and Futures Commission (SFC) has banned Bum Suk Kim, a former employee of BNP Paribas Wealth Management and BNP Paribas from re-entering the industry for 27 months, reports ours sister publication, International Adviser.
The disciplinary action on 29 March 2022 came after an SFC investigation following a self-report from BNP Paribas and referral of findings from the Hong Kong Monetary Authority (HKMA).
Details
The SFC found that from March 2015 to August 2017, Kim “operated a client account discretionarily without obtaining written authorisation under the guise of pre-signed client instruction forms”.
He “misled” BNP Paribas by “creating a false appearance that the instructions for buying and selling investment products originated from the client who was arranged to pre-sign blank client instruction forms and risk mismatch acknowledgement letters when in fact he was operating the account discretionarily”, the regulator added.
According to the regulator, Kim adopted a similar practice with three other clients and asked them to pre-sign blank client instruction forms so that he could place trades for their accounts without having to inform them in advance.
He also “deceived” BNP Paribas with false call reports that he had met or contacted the clients to give them investment advice and/or take order instructions from them when in fact he had not.
Outcome
The SFC said that it considers that “Kim is not fit and proper to be a regulated person as his conduct was deceptive and dishonest, and casts doubt on his character and reliability as well as his ability to carry on regulated activities competently and honestly”
“In deciding the sanction, the SFC took into account all relevant circumstances, including Kim’s misconduct and breaches of BNP Paribas’ policies lasted for almost two and a half years, his admission of using pre-signed documents and causing the production of false call reports, as well as his otherwise clean disciplinary record.”
