On 24 July ,The SFC has reprimanded and fined Victory Securities Company Limited HK$1.7 million and suspended its responsible officer and manager-in-charge Stephen Chiu Che Leung for three months from 22 July 2026 to 21 October 2026 for regulatory breaches identified during an investigation into a suspected ramp-and-dump scheme. In 2019, a new client placed share selling orders at Victory and submitted purported brokerage holding statements, yet the firm failed to conduct adequate inquiries and address obvious red flags, including inconsistencies between the client’s declared financial profile and claimed share ownership, and did not report the client’s potential fraudulent document submission to the SFC. The SFC ruled that Victory’s handling of the client account violated the SFC Code of Conduct and AML/CTF regulatory requirements, with the lapses attributable to Chiu’s negligence in his senior management and supervisory duties. In mitigation, the SFC considered the incident was isolated without systemic internal control flaws, Victory has strengthened internal policies, procedures and staff training afterward, and both the firm and Chiu fully cooperated with the investigation, alongside Chiu’s otherwise clean disciplinary record.
Sources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=26PR113
Relative Circulars: https://apps.sfc.hk/edistributionWeb/api/news/openAppendix?lang=EN&refNo=26PR113&appendix=0