The Securities and Futures Commission (SFC) has prohibited Mr Tong Ho Yin, a former responsible officer (RO) of HF Asset Management Limited (HFAM), from returning to the industry for nine years from 16 July 2025 to 15 July 2034.
The Hong Kong regulator also fined Tong $350,000.
The SFC’s investigation revealed that during Tong’s tenure as RO, HFAM failed to act in the best interests of a fund under its management and to properly manage conflicts of interest when entering into loan and stock lending agreements for the fund on three separate occasions between May 2017 and December 2018.
HFAM’s misconduct was evident in its repeated failures regarding these arrangements, all of which ultimately defaulted. These failures culminated in significant financial losses of $25.6 million for the fund amounting to 86% of its net asset value.
The SFC considers all of HFAM’s recurrent failures were attributable to Tong’s failure to discharge his duties as an RO and a member of the senior management of HFAM.
In deciding the sanction, the SFC has taken into account a variety of factors, including the severity and recurring nature of HFAM’s and Tong’s misconduct and the importance of sending a strong deterrent message to the industry that the SFC will not tolerate substandard conduct in fund management practices.
The regulator also considered Tong’s otherwise clean disciplinary record and his financial situation.
