Columnist Beyond Reproach For Pushing Stocks He Owned In A Newspaper Column Without Telling Readers, But Not For Failing To Run It By His Superiors


Pump-and-dump schemes are a-OK in Hong Kong—if you give your bosses a heads up.

The Securities and Futures Commission found that on 25 occasions from March 2009 to March 2010, Mr. Cheung bought stocks through an undisclosed account registered in his wife’s name and, shortly afterward, published newspaper columns talking up those stocks….

Licensed brokers in Hong Kong are permitted to trade on the side for personal profit, but must disclose this to their employers and have the activity vetted by their senior managers. Mr. Cheung did not declare his activity to his employer at the time, the local brokerage Quam Group. He now works at the Hong Kong unit of Taiwan’s Polaris Securities.

Hong Kong Broker Fined for Hyping Undisclosed Trades [DealBook]