The Australian Securities and Investments Commission (ASIC) has permanently banned former HSBC financial planner, Tak Simson Kwok, from the financial services industry for misleading, deceptive, and dishonest conduct in relation to millions of dollars of client funds and investments.
Perth-based Kwok worked at HSBC between 29 September 2009 and 16 December, 2013.
ASIC launched an investigation into Kwok after being alerted by HSBC Bank Australia, and found that he had engaged in dishonest conduct in relation to client funds and investments. This included:
- Misleading and deceiving four individual clients into investing a total of $1,975,000 that they falsely believed had been placed into HSBC-approved products;
- Deceiving a further two individual clients into investing or reinvesting a total of $2,295,000 into what clients falsely believed was a HSBC-approved annuity investment product;
- Forging documents and signatures to disguise the fact that client money has not been invested into HSBC-approved products; and
- Deceiving HSBC into believing he was only providing recommendations to the clients about products on the HSBC-approved products’ list.
ASIC also found that he was not ‘of good fame or character’.
HSBC commenced court actions due to Kwok’s behavior, which resulted in full compensation to all affected clients.
Kwok, who has now the right to appeal to the Administrative Appeals tribunal for a review of ASIC’s decision, is the 51st individual to be banned by ASIC from providing financial services since 1 July 2015, of which 26 have been permanently banned.
ASIC accepted an enforceable undertaking from HSBC earlier this month for potentially deficient advice on retail structured products.
