SFC suspends convicted financial influencer's license

The Securities and Futures Commission has suspended a financial influencer known as Franky Wong for 16 months following his criminal conviction for providing investment advice on a subscription-based chat group that he hosted on Telegram without a license.

A licensed representative of Tse’s Securities, Wong Ming-chung could only act on behalf of the firm to which he is accredited when carrying out business in regulated activities. In spite of the fact, he operated the Telegram chat group in his personal capacity between January 2, 2018 and May 21, 2019, the SFC said in a statement on Thursday.

Taking into account all relevant circumstances, including his cooperation in resolving the commission's concerns, the SFC has considered Wong unfit to remain licensed to carry out regulated activities due to his criminal conviction.

“Investors should remain vigilant and exercise caution when availing themselves of information shared by financial influencers, or finfluencers,” said SFC executive director of enforcement Christopher Wilson.

Some finfluencers who provide investment-related content on social media and other online platforms may in fact be conducting regulated activities, for which they must be licensed by the SFC, Wilson said, adding that finfluencers who are not licensed may not adhere to the SFC’s requisite standards of conduct and accountability, and investors may suffer from relying on their advice.

Before acting upon investment advice, investors should ensure that firms and individuals who provide such are properly licensed, Wilson added.

The Eastern Magistrates’ Court convicted Wong of one charge of carrying on a business of advising on securities when he was not licensed to do so following his guilty plea on June 20, 2024. Wong was fined HK$10,000 and ordered to pay the SFC’s investigation costs.

STAFF REPORTER