The Hong Kong Securities and Futures Commission (SFC) has imposed a lifetime ban on Xie Yangxiong, the director of Wansom Asset Management (WAML) and Wansom Securities (WSL).
The decision follows a thorough investigation that found Yangxiong at the heart of false and misleading financial information submitted during business license applications.
As the sole figure controlling corporate bank accounts, Yangxiong manipulated corporate financial data by artificially meeting liquid capital requirements when granting licenses. Funds were quickly withdrawn after applications were submitted. This decision would have led to a denial of licenses if the money had not been temporarily deposited.
These manipulation actions were initiated during license applications for WAML and WSL in July and August 2018, respectively. After acquiring the licenses, mismanagement of funds continued, with Yangxiong withdrawing funds from businesses for personal use.
This resulted in the companies’ liquid capital shortfalls ranging from $1.58 million to $3 million from July to October 2018. The SFC said the misconduct by WAML and WSL was a direct result of the Director’s actions.
SFC wants to send a strong message
In determining the lifetime ban, the SFC considered various factors. Yangxiong’s integrity was found to be compromised and the regulator aimed to send a strong message to the industry regarding its zero-tolerance policy towards attempts to mislead the commission.
On the other hand, since WAML and WSL had not conducted any regulated activity prior to their license suspension and no customers were affected by their regulatory breaches, these factors were considered less serious. In addition, the principal’s clean disciplinary record prior to this incident was taken into account.
This case reminds industry participants of the SFC’s commitment to maintaining market integrity and its willingness to take decisive action against any financial abuse that undermines that integrity.
In the past, the regulator has used similar penalties. In 2021, SFC took action against IDS Forex
Forex
Foreign exchange or forex is the act of converting the currency of one country into the currency of another country (which has a different currency); for example, converting British Pounds to US Dollars, and vice versa. Currency exchange can be done at a physical counter, such as at a currency exchange, or on the internet through brokerage platforms, where currency speculation takes place, known as forex trading. The foreign exchange market, by its very nature, is the largest trade in the world
Foreign exchange or forex is the act of converting the currency of one country into the currency of another country (which has a different currency); for example, converting British Pounds to US Dollars, and vice versa. Currency exchange can be done at a physical counter, such as at a currency exchange, or on the internet through brokerage platforms, where currency speculation takes place, known as forex trading. The foreign exchange market, by its very nature, is the largest trade in the world
Read this term the two co-CEOs of HK Limited, Chung Wooman and Ki Bonggan, and banned them for life from re-entering the financial sector.
In a recent event in March, SFC banned Philip John Shaw, former Head, Board Member and Head of Pan-Asian Execution Services of Citigroup Global Markets Asia Limited (CGMAL), for serious regulatory violations. . According to the regulator’s statement, Shaw cannot re-enter the financial industry for the next ten years.
In addition, the Hong Kong securities regulator has filed charges against 24 people for engaging in market manipulation. These charges follow an extensive investigation by the SFC and Hong Kong police over several months, targeting suspects money laundering
money laundering
Money laundering is an umbrella term to describe the process by which criminals disguise the original property and proceeds of criminal behavior by making those proceeds appear to come from a legitimate source. Money laundering is a problem that cuts across countless industries and sectors, most notably the financial services space. Although criminal money can be successfully laundered without the help of the financial industry, billions of dollars of criminal money are being laundered
Money laundering is an umbrella term to describe the process by which criminals disguise the original property and proceeds of criminal behavior by making those proceeds appear to come from a legitimate source. Money laundering is a problem that cuts across countless industries and sectors, most notably the financial services space. Although criminal money can be successfully laundered without the help of the financial industry, billions of dollars of criminal money are being laundered
Read this term case.
The Hong Kong Securities and Futures Commission (SFC) has imposed a lifetime ban on Xie Yangxiong, the director of Wansom Asset Management (WAML) and Wansom Securities (WSL).
The decision follows a thorough investigation that found Yangxiong at the heart of false and misleading financial information submitted during business license applications.
As the sole figure controlling corporate bank accounts, Yangxiong manipulated corporate financial data by artificially meeting liquid capital requirements when granting licenses. Funds were quickly withdrawn after applications were submitted. This decision would have led to a denial of licenses if the money had not been temporarily deposited.
These manipulation actions were initiated during license applications for WAML and WSL in July and August 2018, respectively. After acquiring the licenses, mismanagement of funds continued, with Yangxiong withdrawing funds from businesses for personal use.
This resulted in the companies’ liquid capital shortfalls ranging from $1.58 million to $3 million from July to October 2018. The SFC said the misconduct by WAML and WSL was a direct result of the Director’s actions.
SFC wants to send a strong message
In determining the lifetime ban, the SFC considered various factors. Yangxiong’s integrity was found to be compromised and the regulator aimed to send a strong message to the industry regarding its zero-tolerance policy towards attempts to mislead the commission.
On the other hand, since WAML and WSL had not conducted any regulated activity prior to their license suspension and no customers were affected by their regulatory breaches, these factors were considered less serious. In addition, the principal’s clean disciplinary record prior to this incident was taken into account.
This case reminds industry participants of the SFC’s commitment to maintaining market integrity and its willingness to take decisive action against any financial abuse that undermines that integrity.
In the past, the regulator has used similar penalties. In 2021, SFC took action against IDS Forex
Forex
Foreign exchange or forex is the act of converting the currency of one country into the currency of another country (which has a different currency); for example, converting British Pounds to US Dollars, and vice versa. Currency exchange can be done at a physical counter, such as at a currency exchange, or on the internet through brokerage platforms, where currency speculation takes place, known as forex trading. The foreign exchange market, by its very nature, is the largest trade in the world
Foreign exchange or forex is the act of converting the currency of one country into the currency of another country (which has a different currency); for example, converting British Pounds to US Dollars, and vice versa. Currency exchange can be done at a physical counter, such as at a currency exchange, or on the internet through brokerage platforms, where currency speculation takes place, known as forex trading. The foreign exchange market, by its very nature, is the largest trade in the world
Read this term the two co-CEOs of HK Limited, Chung Wooman and Ki Bonggan, and banned them for life from re-entering the financial sector.
In a recent event in March, SFC banned Philip John Shaw, former Head, Board Member and Head of Pan-Asian Execution Services of Citigroup Global Markets Asia Limited (CGMAL), for serious regulatory violations. . According to the regulator’s statement, Shaw cannot re-enter the financial industry for the next ten years.
In addition, the Hong Kong securities regulator filed charges against 24 people for engaging in market manipulation. These charges follow an extensive investigation by the SFC and Hong Kong police over several months, targeting suspects money laundering
money laundering
Money laundering is an umbrella term to describe the process by which criminals disguise the original property and proceeds of criminal behavior by making those proceeds appear to come from a legitimate source. Money laundering is a problem that cuts across countless industries and sectors, most notably the financial services space. Although criminal money can be successfully laundered without the help of the financial industry, billions of dollars of criminal money are being laundered
Money laundering is an umbrella term to describe the process by which criminals disguise the original property and proceeds of criminal behavior by making those proceeds appear to come from a legitimate source. Money laundering is a problem that cuts across countless industries and sectors, most notably the financial services space. Although criminal money can be successfully laundered without the help of the financial industry, billions of dollars of criminal money are being laundered
Read this term case.
