Hong Kong Securities and Futures Commission suspends former MTF Securities responsible officer Joey Lo for four months over credit risk and suspicious trading monitoring failures

The Hong Kong Securities and Futures Commission (SFC) has suspended Joey Lo Wai Hon, a former responsible officer and senior manager of MTF Securities Limited, for four months from 30 September 2025 to 29 January 2026 for failing to properly manage credit risks and to identify and report suspicious client trading patterns. The SFC found MTF did not maintain effective policies and procedures for credit risk management or an ongoing monitoring system to identify, examine and report suspicious trading patterns, breaching the SFC Code of Conduct and other risk management and anti-money laundering and counter-financing of terrorism requirements. In January 2021, three cash clients deposited only 10,000 each shortly after account opening, yet MTF granted trading limits of 4 million to 5 million per client at the request of a substantial shareholder without client applications or proper due diligence on their financial status; the limits were then used for transactions inconsistent with two clients’ financial situations and displaying features that should have raised suspicion of potential market misconduct and money laundering, but the activity was not followed up or reported to the Joint Financial Intelligence Unit and the SFC in a timely manner. In setting the sanction, the SFC cited the seriousness of the failures and the need for deterrence, while taking account of Lo’s cooperation and otherwise clean disciplinary record; Lo’s licence remains active but he is currently not accredited to any principal. In a separate case announced on 4 June 2025, the SFC prohibited another former MTF responsible officer and executive director, Wong Lai Suen, from re-entering the industry for six months.