Hong Kong’s Securities and Futures Commission (SFC) has suspended Ms Loretta Lee Si Kar, a responsible officer, manager-in-charge and director of Tung Tai Securities Company Limited, for three months and two weeks.

The suspension will run until 14 March 2026.

The disciplinary action follows the SFC’s sanctions against Tung Tai for its failures relating to unauthorised sales of client securities and transfers of client funds between 6 September 2019 and 18 February 2020.

The SFC considers that Tung Tai’s failures were attributable to Lee’s neglect of her duties as an RO and a member of the senior management of Tung Tai during the material time.

The SFC’s investigation found that Tung Tai, acting on instructions from a bogus email address similar to that of an overseas client, sold shares in the client’s account and transferred the sale proceeds totalling US$3,301,740 to three overseas bank accounts that were not designated by the client.

Apart from the incorrect email address, there were other signs of potential irregularities, including telegraphic transfer rejections by multiple banks, but Tung Tai did not act on these red flags and continued to process the fund transfers.

The SFC found that Tung Tai failed to ensure that client assets were adequately safeguarded. Tung Tai also failed to establish effective internal control procedures to protect client assets from theft, fraud and other acts of misappropriation.

In deciding the disciplinary sanction against Lee, the SFC has taken into account a variety of factors including the seriousness of the failures to put in place adequate internal controls to safeguard client assets. The regulator notes Lee’s cooperation and her otherwise clean disciplinary record.