Hong Kong Securities and Futures Commission announced that the Eastern Magistrates’ Court convicted finfluencer Mr Chau Pak Yin, previously known as Chau Kin Hei, for providing paid investment advice through a subscription-based Telegram chat group without an SFC licence. The court imposed a six-week custodial sentence and ordered him to pay the SFC’s investigation costs, marking the first custodial sentence secured by the SFC against a finfluencer for this type of conduct. Between 16 April 2021 and 14 May 2021, Chau hosted a Telegram group that admitted members of the public on a paid subscription basis and provided commentaries, recommendations and target prices on securities, while also responding to subscribers’ questions about Nasdaq-listed stocks. Subscribers were charged USD 200 or HKD 1,560 per month, generating total subscription fees of HKD 43,680; the prosecution was brought under sections 114(1)(a) and 114(8) of the Securities and Futures Ordinance for carrying on a business in a regulated activity, namely advising on securities, without a licence. Chau was remanded in custody after his bail application was refused pending his intended appeal against conviction and sentence.
Hong Kong Securities & Futures Commission 2025-11-07
Hong Kong Securities and Futures Commission secures first jail sentence for unlicensed finfluencer investment advice on paid Telegram group
The Hong Kong Securities and Futures Commission announced the conviction of finfluencer Mr. Chau Pak Yin by the Eastern Magistrates’ Court for providing paid investment advice without a licence via a Telegram chat group. Chau received a six-week custodial sentence and was ordered to pay investigation costs, marking the first custodial sentence for such conduct by the SFC under sections 114(1)(a) and 114(8) of the Securities and Futures Ordinance.