The Eastern Magistrates’ Court today convicted Mr Wong Ming Chung for providing investment advice on a subscription-based chat group on Telegram he hosted without a licence in a prosecution brought by the Securities and Futures Commission (SFC) of Hong Kong.
Wong pleaded guilty to a charge of carrying on a business of advising on securities when he was not licensed to do so and was fined $10,000. He was also ordered to pay the SFC’s investigation costs.
Although Wong is an SFC-licensed representative, he can only act for the firm to which he is accredited. In this instance, Wong operated the Telegram chat group in his personal capacity.
The Court found that between 2 January 2018 and 21 May 2019, Wong hosted a chat group on Telegram named “FRANKY – 即市直播谷” which was opened to members of the public on a subscription by payment basis. On every trading day, Wong circulated commentaries and responded to subscribers’ questions in the Telegram group regarding the performance of the Hang Seng Index and various Hong Kong-listed securities.
The SFC reminds investors to check the SFC’s Public Register of Licensed Persons and Registered Institutions on the SFC website (www.sfc.hk) before investing to ensure that firms and people who provide investment advice on securities are properly licensed.
