The SFC imposed a ten-year industry ban on Luk in April 2010, in relation to insider trading.
According to the SFC, Luk was licensed to carry out asset management activity and was accredited to JF Asset Management and JF International Management, from 1990 to 2005.
His licence was revoked in 2006, and the Market Misconduct Tribunal (MMT) found that Luk, together with David Tsien, a former equity salesman at JP Morgan Securities (Asia Pacific), and another party, had engaged in insider dealing with respect to shares in China Overseas Land and Investment (COLI) – a company which develops and sells property projects.
According to the MMT, Tsien disclosed inside information to Luk and another party between 7 Jan, 2004 and 26 Jan, 2004, regarding negotiations between JP Morgan and COLI. As a result, Luk and the other party sold COLI shares to avoid what they believed would be a fall in the market price of the securities, following disclosure of the relevant information to the market.
The MMT’s report concerning dealing in COLI shares is available on its website.
