SFC bans Nerico Brothers Limited’s former responsible officer, manager-in-charge and director Paul Wan Kai Leung for life

The Securities and Futures Commission (SFC) has banned Mr Paul Wan Kai Leung, former responsible officer, manager-in-charge, and director of Nerico Brothers Limited (NBL), from re-entering the industry for life (Note 1).

The disciplinary action is related to the SFC’s earlier sanctions against NBL and its director, Jerff Lee Cheuk Fung, for misuse of client assets, facilitation of the misappropriation of client assets, and provision of false or misleading information to the SFC (Note 2).

Notably, the SFC found that between June 2020 and January 2021, NBL misused a client’s funds totalling over US$68 million for the benefit of the firm’s own account without the client’s knowledge, instruction, authorization or consent, and in breach of the express terms of the client agreement.

The SFC also found that NBL knowingly facilitated a scheme orchestrated by Neo Ng Yu and his connected persons and entities, resulting in the misappropriation of approximately US$154 million of the same client’s funds since January 2021 (Notes 3 and 4).

Furthermore, during the SFC’s inquiry and investigation, NBL presented two contradictory narratives and relied on two sets of conflicting documents to explain the usage and whereabouts of the misappropriated client funds. The SFC found that both narratives were false and both sets of documents relied on by NBL to support these false narratives and conceal the misappropriation were fabricated.

The SFC considers that the above-mentioned misconduct of NBL was directly attributable to the actions of both Jerff Lee and Paul Wan. Specifically, Paul Wan authorised the transfers of the client’s funds and executed documents that facilitated the misuse and misappropriation of these funds. In addition, Paul Wan personally breached the Securities and Futures Ordinance by knowingly giving false or misleading answers and explanations in his interviews with the SFC.

The SFC issued a decision in August 2025 to ban Paul Wan for life for his misconduct. He applied to the Securities and Futures Appeals Tribunal for a review of the SFC’s decision in October 2025, and subsequently withdrew the review application in May 2026.

In deciding the disciplinary sanction against Paul Wan, the SFC has taken into account that:

• Paul Wan’s conduct was egregious and serious, thereby undermining the confidence of investors and the public in the integrity of the financial markets;

• he compromised his honesty and integrity; and

• his conduct caused significant losses to the client.

End

Notes:

1. Paul Wan was a director of NBL from 1 October 2000 to 10 August 2022. He was accredited to NBL and approved to act as its responsible officer in respect of: (a) Type 2 (dealing in futures contracts) and Type 9 (asset management) regulated activities between 1 April 2003 and 19 June 2022; (b) Type 5 (advising on futures contracts) regulated activity between 1 April 2003 and 2 August 2004; and (c) Type 1 (dealing in securities) and Type 3 (leveraged foreign exchange trading) regulated activities between 23 January 2019 and 19 June 2022. He was also NBL’s manager-in-charge for the core functions of (a) Compliance, (b) Anti-Money Laundering and Counter-Terrorist Financing; (c) Overall Management Oversight; (d) Information Technology; (e) Key Business Line; and (f) Risk Management during different time periods between 29 June 2017 and 19 June 2022. Paul Wan is currently not licensed by the SFC.

2. The SFC has revoked the licence of NBL and banned Jerff Lee from engaging in all regulated activities for life. Please refer to the SFC’s press release dated 28 August 2025 for details of the disciplinary actions.

3. Neo Ng has been a substantial shareholder of the holding company of NBL’s client since 23 December 2020. Neo Ng also served as a director of the client from 15 July 2021 to 20 January 2022.

4. Please refer to the SFC’s press release dated 28 August 2025 for the SFC’s related disciplinary action against Neo Ng.