The Court of Eastern Magistrates found Mr. Wong Ming Chung, a licensed representative of the Securities and Futures Commission (SFC), guilty of giving investment advice over a Telegram chat group without the required authorization. 
Wong pleaded guilty to <a href="https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR110" target="_blank" rel="noreferrer noopener nofollow">charges</a> of carrying on a business of advising on securities even though he was not licensed for that. For this, the court fined him $10,000 and also had to pay the investigation costs of SFC. 
Wong holds the SFC license to engage in Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. He may only act on behalf of the company to which he was accredited but, he is not authorized to act in a personal capacity. 
As per the Court’s founding, Wong ran the “FRANKY – 即市直播谷” Telegram chat group, which was open to the public with a subscription, from January 2, 2018, to May 21, 2019. 
Wong answered subscribers’ inquiries regarding the performance of the Hang Seng Index and other Hong Kong-listed stocks during this time by providing daily commentary. These actions were carried out without the approval of his accredited firm, which is against SFC rules. 
Schedule 5 of the Securities and Futures Ordinance (SFO) classifies this kind of “advising on securities” as regulated activity.&nbsp; Following SFO Sections 114(1)(a) and 114(8), conducting business in a regulated activity without a license from the SFC is prohibited unless there are reasonable circumstances.&nbsp; 
Wong surpassed the parameters of his accreditation by providing personal advice through the Telegram group, even though he was licensed. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
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SFC Convicts Telegram Host for Unlicensed Investment Advice

The Crypto Times

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