SFC bans Cheng Lai Ho for seven months

The Securities and Futures Commission (SFC) has prohibited Mr Cheng Lai Ho, a former relevant individual of Bank of Communications Co., Ltd. and Bank of Communications (Hong Kong) Limited (collectively, BOCOM), from re-entering the industry for seven months from 27 October 2025 to 26 May 2026 (Note 1).

The disciplinary action follows an SFC investigation which found that, between April 2017 and April 2022, Cheng failed to disclose to BOCOM the existence of multiple personal securities trading accounts that he held in his name at other financial institutions (Note 2).

The SFC also found that between August 2017 and April 2022, Cheng opened and maintained a securities margin account at an external brokerage firm in the name of his mother and conducted over 260 personal trades through the account. In this connection, he did not disclose to BOCOM his personal interest in the account, report his personal trades, provide the relevant statements of account to BOCOM, and hold the shares in the account for the minimum holding period required by BOCOM before selling them.

During the material time, Cheng further falsely declared to BOCOM on eight occasions that he had complied with the firm’s staff dealing policy.

Cheng’s conduct circumvented BOCOM’s internal control under its staff dealing policy and prevented BOCOM from monitoring his personal trading activities. 

The SFC considers that Cheng’s concealment of his mother’s account and his trading activities in it to be wilful and dishonest, and his failure to disclose his pre-existing personal securities trading accounts to BOCOM casts doubt on his reliability and ability to carry on regulated activities competently. All things considered, Cheng’s conduct calls into question his fitness and properness to be a regulated person.

In determining the sanction against Cheng, the SFC has taken into account all relevant circumstances, including his violations lasted over five years, his cooperation in resolving the SFC’s concerns, and his otherwise clean disciplinary record.

End

Notes:

1. Cheng was a relevant individual engaged by Bank of Communications Co., Ltd. to carry on Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities under the Securities and Futures Ordinance (SFO) between 7 April 2017 and 28 January 2018, and Bank of Communications (Hong Kong) Limited to carry on Type 1 and Type 4 regulated activities under the SFO between 22 January 2018 and 29 April 2022. Cheng is currently not registered with the Hong Kong Monetary Authority or licensed by the SFC.

2. No transactions were conducted in these accounts opened in Cheng’s name at other financial institutions during the course of Cheng’s employment with BOCOM. Cheng only disclosed two of these accounts to BOCOM on 10 April 2022, shortly before he left BOCOM.