The Securities and Futures Commission (SFC) of Hong Kong has suspended Ms. Hadiee Chui Lai Chun, a licensed representative of Rifa Securities Limited, for a period of seven months-effective June 13, 2025, to January 12, 2026-following serious compliance breaches.
What Happened
An SFC investigation revealed that between September 2018 and September 2021, Chui operated a personal trading account at another brokerage without notifying her employer, Rifa. Over this period, she executed 20 personal trades without seeking prior approval from any responsible officer or providing transaction reports as required under the firm’s staff dealing policy.
This lack of transparency undermined the firm’s internal compliance procedures and prevented it from properly monitoring employee trading activity.
SFC: “Wilful and Dishonest Conduct”
The regulator concluded that Chui’s actions were wilful and dishonest, calling into question her fitness and properness to remain a licensed person.
Despite the seriousness of the breaches, the SFC acknowledged Chui’s cooperation during the investigation and her clean disciplinary record. These mitigating factors contributed to the final decision of a seven-month suspension instead of a harsher penalty.
Why It Matters: Strengthening Internal Compliance
For brokers and prop firms alike, this case is a clear reminder that regulatory scrutiny doesn’t only apply at the institutional level-individual conduct can have firm-wide implications. Undisclosed personal trading accounts not only violate internal policies but also create gaps in compliance oversight, exposing firms to reputational and regulatory risk.
Maintaining a strong internal control culture-with clear policies, regular disclosures, and effective monitoring-is essential. As regulatory frameworks tighten globally, firms must ensure their employees are fully aligned with both internal rules and industry obligations.
