The Securities and Futures Commission (SFC) of Hong Kong has prohibited Mr Jonathan Dominic Iu Wai Ching from re-entering the industry for 15 years.
The disciplinary action follows the Market Misconduct Tribunal’s (MMT) determination that Iu, a former responsible officer of Tarascon Capital Management (Hong Kong) Limited, had engaged in market misconduct by false trading in the shares of Sinopharm Tech Holdings Limited and Quantum Thinking Limited.
He carried out the trades through the brokerage accounts of the hedge fund managed by Tarascon and of his mother, resulting in gains of $5.6 million in his mother’s brokerage account at the expense of the hedge fund.
The SFC concluded that Iu is not a fit and proper person to be licensed.
In determining the sanction, the regulator took into account a variety of factors including Iu’s manipulative conduct, his violation of the trust and confidence placed in him by his clients, as well as the need to send a strong deterrent message to the market to prevent other practitioners from committing similar conduct in the future.
