Regulators in Hong Kong have secured their first conviction against a solicitor for breaching secrecy rules.
The territory’s Securities and Futures Commission said Tse Yin Fung had pleaded guilty to one count and had been fined $25,000 (around £2,700) at the Eastern Magistrates’ Court. Tse, principal of law firm O Tse & Co, was also ordered to pay the investigation costs.
The SFC secrecy provisions create an obligation and legal requirement for specified persons not to disclose information they might receive in the course of their work.
The court heard that Tse was acting as a legal representative for an individual being investigated for a potential ‘ramp and dump’ scam, in which social media is used to manipulate the stock market. In such schemes, fraudsters ramp up shares to induce investors to buy at an artificially high price.
Tse received confidential information regarding a restriction notice placed on his client which was subject to the secrecy provision, the court heard. This information was then disclosed to two other individuals.
He was the first solicitor convicted of an offence for contravening the secrecy provision under the Securities and Futures Ordinance legislation.
In a statement, SFC executive director of enforcement Christopher Wilson said: ‘Legal professionals should maintain the highest standard of professional conduct as any wrongdoing while acting on behalf of their clients may jeopardise the integrity of our investigation.’
Yin Fung Tse is listed by the Solicitors Regulation Authority as a registered foreign lawyer in England and Wales. He is the founder of O Tse & Co, a firm based in Manchester serving the Hong Kong diaspora. According to Companies House, Tse has been a director of the business since 2022.
