The Securities and Futures Commission, Hong Kong's financial regulatory body, has fined an investment firm HK$1.2 million ($154,000) for "internal control failures and unauthorised transfers."

The disciplinary action against A One Investment Company follows a SFC probe into a report by the firm about suspected fraudulent activities in the account of one of its clients. The SFC found that from 4 July 2012 and 10 August 2012, 538,000 shares of Li & Fung Limited were sold and a total of €676,000 and £160,000 were transferred out of the client's account in 13 transfers to third party bank accounts in Italy, Norway, Singapore and the UK allegedly upon instruction of the client via email to officer Alysia Ann Lee.

The client denied the instructions and said his email had been compromised. The SFC suspended the approval granted to Lee to act as a responsible officer for A One and suspended her license for eight months, from 28 July 2013 to 28 March 2014.

According to the regulator, A One failed to ensure the client assets are safeguarded and to establish effective internal control procedures to prevent theft, fraud and misappropriation. 

Read the full statement of disciplinary actions.