Hong Kong's Securities and Futures Commission has banned Mr Yuen Siu Lun, a former responsible officer of Bright Smart Forex Limited (BS Forex) and head of the bullion operations of Bright Smart Global Bullion Limited (BS Bullion), from re-entering the industry for seven years for making order amendments to bullion contracts as a means of obtaining personal financial benefit.

The SFC also accuses him of abusing the access right granted to him. After an investigation it found that, between April and October 2014, Yuen amended the data of approximately 300 bullion transactions in the accounts of seven clients, even though there were no genuine error trades that called for such amendments, which Yuen made without the knowledge and approval of the forex firm. The order amendments were not genuine error trades that had to be amended, nor were there any circumstances to justify them. They benefited certain clients at the expense of BS Bullion. Yuen caused a total loss of approximately $1.26 million to BS Bullion, consisting of profits and rebates arising out of all the orders placed in the accounts of the relevant clients.

According to oral agreements with the clients, Yuen received a rebate for each completed trade and gained a personal financial benefit in a total sum of approximately $180,000. Although the SFC does not regulate gold bullion business, it considers that Yuen is not a fit and proper person to remain licensed under the Securities and Futures Ordinance.

How does one go about avoiding a lifetime ban from financial services when one has been deliberately dishonest, breached the trust of one's employer, and defrauded people of more than $1.26 million having obtained illegal rebates of $180,000? The SFC's decision notice points the way. One must:

• pay it all back;
• be remorseful; and
• have an otherwise clean disciplinary record.