ICBCI is the wholly-owned Hong Kong subsidiary of the Industrial and Commercial Bank of China.
In 2009, Dick Ma Tor Fuk was an officer of ICBC International Securities, which acted as one of the joint lead managers in the listing of Powerlong Real Estate Holdings.
According to the SFC, Ma failed to ensure that all placees (investors who subscribed to the offer shares via the international tranche) referred by Powerlong were independent from Powerlong before making a declaration to Hong Kong stock exchange authorities.
Powerlong had referred the placees to ICBCI Capital, which in turn referred them to its affiliate ICBCI Securities to open accounts for the placees’ subscription of the offer shares, the SFC said.
“Ma accepted the subscriptions without conducting or causing know-your-client due diligence as required under the Code of Conduct, failing to find out their financial situation or confirm their independence from Powerlong.
“Ma also failed to perform ongoing scrutiny to ensure that the subscriptions were consistent with his knowledge of the placees’ financial situation.”
He also confirmed that the placees were all independent, despite knowing that he did not have sufficient evidence to make the confirmation, the SFC said.
Ma’s licence was suspended for eight months to August 2015.
Earlier this year, ICBCI Securities and ICBCI Capital were fined in a separate disciplinary action.
