Hong Kong SFC fines Victory Securities HK$1.7 million and suspends responsible officer
Hong Kong’s Securities and Futures Commission said Victory Securities Company Limited was reprimanded and fined HK$1.7 million over regulatory breaches in its handling of a client account. The regulator also suspended the licence of Chiu Tsz Leung, a responsible officer and core function holder, for three months from July 22, 2026 to October 21, 2026. According to the SFC, the misconduct came to light during an investigation into a suspected ramp-and-dump scheme. The client opened the account on October 29, 2019, later placed two share-sale instructions, and submitted statements said to be issued by other brokers as proof of holdings. The SFC said the value of those holdings was clearly inconsistent with the client’s declared financial situation, yet Victory Securities did not make sufficient inquiries before executing the orders or obtain reasonable explanations for the warning signs. Later information indicated the client may have submitted false documents to facilitate one of the trades, but the firm did not report the suspected fraud or deception to the SFC. In deciding the sanctions, the regulator said it took into account that the case was isolated, no systemic internal control failure was found, the firm had strengthened its policies and procedures and carried out mandatory training, and both the company and Chiu cooperated with the investigation.
