“Finfluencers” beware! SFC suspends finfluencer for 16 months following his criminal conviction for providing investment advice without a license

Background

On 20 March 2025, the Securities and Futures Commission (“SFC”) suspended the licenses of Mr Wong Ming Chung (“Mr Wong”), a “finfluencer”[1] also known as a Franky Wong and as ““股票狙擊手”, for 16 months following his criminal conviction for providing investment advice on a subscription-based chat group on Telegram that he hosted without a license.

Mr Wong was a licensed representative of Tse’s Securities Limited, a SFC licensed corporation in Hong Kong, with Type 1 (Dealing in securities), Type 4 (Advising on securities) and Type 9 (Asset management) licenses at the relevant time. On 20 June 2024, the Eastern Magistrates’ Court convicted Mr 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.

Although Mr Wong was an SFC-licensed representative at the relevant time, this only permitted him to act for the SFC licensed entity he was accredited to in carrying on business in the relevant regulated activities. However, Mr Wong operated the Telegram chat group in his personal capacity and carried out regulated activities outside the scope of his license.

In the circumstances, the SFC further considered that Mr Wong was not a fit and proper person to carry on regulated activities due to his criminal conviction, leading to the suspension.

Commentary

This case is an important reminder for all:

1) licensed persons that the capacity in which they carry out regulated activities is highly relevant. A SFC license permits a licensed person to carry out regulated activities under specific circumstances (and under specific conditions if applicable to the license) and should not be treated as a broad permit to carry out the regulated activity in any capacity and

2) who might be tempted to give financial advice or offer financial services as part of a social media presence in the hope of enhancing their online media presence and their levels of engagement.

This case is also helpful to highlight the SFC’s vigilance in carrying out its supervisory and regulatory functions, and that the SFC will investigate and carry out enforcement actions even for relatively less serious offences and breaches.

Russell Bennett and John Lee

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Russell Bennett
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Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.

[1] Finfluencers, or financial influencers, are considered by the SFC to be individuals who leverage social media platforms to share investment-related content.