Ku is no longer licensed by the SFC.
The events took place between February and October 2008. Ku was working at Pride Fund Management when he sold the Pride Opportunities Fund Series II Fund to a friend, according to the regulator’s statement.
But the friend was not notified that 15% of her intended investment amount, or HK$117,000 ($15,086), was for his commission. “[H]e failed to provide her with material information on the commission she would be charged for investing in the fund and his personal benefit from the commission,” the regulator said.
The amount was split between Ku, who took HK$93,600, and one of Ku’s friends, who took the rest.
The SFC also found that Ku “failed to conduct proper `know your client’ process, including seeking adequate information about the client’s financial situation, investment experience, investment objectives and risk tolerance”.
The firm is under Pride Group, which offers asset management, wealth management, as well as financial services, according to its website. The firm’s five funds, as stated on its website, invest in private equity, venture capital, pre-IPO as well as listed securities in China and Hong Kong.
In a separate action, the fund house was also fined HK$400,000 by the SFC last year, as it refused to mediate a dispute as required in 2013, the regulator said.
