The Securities and Futures Commission (SFC) of Hong Kong has suspended Mr Chow Tsz Lam, a former responsible officer (RO) and manager-in-charge of various core functions of the now dissolved Agg. Asset Management Limited, for 12 months.

The suspension, which will run until 1 September 2026, stems from Chow’s fund management failures.

The disciplinary action followed the SFC’s investigation which found that Agg, as the investment manager of a Cayman-incorporated fund, invested up to 100% of the fund’s assets in debentures issued by companies controlled by Mr Ng Ka Shun, who was the sole shareholder, director and the other RO of Agg.

By doing so, Agg failed to avoid conflicts of interest and properly manage the risks of the fund. Agg also caused the fund to invest in two debentures which appeared to have been constructed for the purpose of inflating the fund’s net asset value.

The SFC has taken disciplinary action against Ng who made investment decisions for the fund and was primarily responsible for these failures.

The SFC found that Chow failed to discharge his duties as an RO and a member of the senior management of Agg to ensure that the firm act in the best interests of the fund and its investors and comply with applicable regulatory requirements.

In deciding the disciplinary sanction, the SFC took into account a variety of factors, including Chow’s cooperation with the regulator and his otherwise clean disciplinary record.