Hong Kong’s Securities and Futures Commission (SFC) recently obtained a court ruling convicting a man of providing paid investment advice in a Telegram chat group. This case reminds investors that before seeking investment advice, they should ensure that the individual or company providing the advice holds a legal license.
Found guilty of providing investment advice without a license
On June 20, 2024, the Hong Kong Eastern District Magistrates’ Court found the man Huang Mingzhong guilty of providing investment advice in a Telegram chat group he established and managed without obtaining the relevant license. Wong admitted his crimes in court and was fined HK$10,000 and ordered to pay the SFC's investigation costs.
Background of the illegal incident: Reporting signs to paying users without a license
Although Huang Mingzhong is a licensed representative of the Hong Kong Securities and Futures Commission, he can only act for his company. In this case, Huang violated relevant regulations by operating a Telegram chat group in his own name. From January 2, 2018 to May 21, 2019, the Telegram group named "FRANKY - Live Broadcast Valley" managed by Huang Nan provided investment opinions on the Hang Seng Index and Hong Kong listed securities to paying subscribers. .
China Securities Regulatory Commission reminds: Ensure the source of investment opinions
The SFC reminds investors that before accepting investment advice, they should check the public register of licensed persons and registered institutions on the Hong Kong Securities and Futures Commission website to ensure that the investment advice received comes from a company or person holding an appropriate license. This will not only protect the interests of investors, but also prevent incidents like providing investment advice without a license from happening again.
A similar situation in Taiwan where currency investment consultants reported stocks was warned by the Financial Supervisory Commission, but there was no strong enforcement like the Hong Kong Securities Regulatory Commission.
(The Financial Supervisory Commission targets investment consulting in the currency circle! p1trader/TCDAO claims that Binance Contract is No. 1 in the world and is listed as illegally operating securities investment consulting)
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