Unlicensed investment advice! Hong Kong financial influencer's Telegram paid group gets into trouble, sentenced to six weeks in prison.

It is no longer a novelty for financial influencers to express investment opinions on social platforms, but if they do so without a license, such behavior may violate the law. According to reports, the Eastern Magistrates' Court in Hong Kong ruled today (November 7) that Hong Kong financial influencer Chow Pak-yin (formerly known as Chow Kin-hee) was found guilty of providing investment advice in a paid Telegram group without obtaining the necessary license. He was sentenced to six weeks in prison and ordered to pay the investigation costs of the Securities and Futures Commission. His bail application was also denied, and he must be remanded in custody pending appeal.

Providing investment advice without a license, the Telegram group has become key evidence.

According to the case provided by the Securities and Futures Commission, the incident occurred between April 16 and May 14, 2021, during which Chow Pak Hin used the Telegram account “Futu Major Shareholder” to establish and manage a paid investment group named “Futu True. Wealth from Private Group.” The group publicly recruited subscribers, and anyone who paid the fee could enter the group to receive his investment advice.

In the group, Chou Po-hsien not only commented on the trends of multiple stocks but also provided buy and sell recommendations and set target prices. He also actively responded to subscribers' questions about NASDAQ-listed securities. Surveys show that he charged each group member a monthly fee of 200 USD (approximately 1,560 HKD), earning a total of 43,680 HKD in just one month.

Operating without a license is illegal, and the Securities and Futures Commission has issued a stern warning to financial influencers.

The Securities and Futures Commission has initiated criminal prosecution against Zhou Boxian and successfully convicted him. Michael Duignan, Executive Director of the Regulatory Enforcement Division of the SFC, issued a statement after the verdict, stating: “The SFC is committed to combating the illegal activities of financial influencers. When financial influencers provide investment content and opinions on social media or online platforms, and these actions constitute regulated activities that require a license, we will not hesitate to hold them accountable.”

Dai Lin added that unlicensed financial influencers often fail to meet the requirements of the Securities and Futures Commission regarding integrity and accountability, which can easily put investors at risk. “We urge the public to verify whether any financial influencer is licensed by the Securities and Futures Commission before considering their opinions, and to adopt a cautious and skeptical attitude towards any investment opportunities promoted online or on social media.”

The sentence and conviction are intended to be appealed; the bail application was denied and must be immediately remanded.

Although Chow Pak-hin has currently been convicted and sentenced to six weeks in prison, he has filed an appeal regarding the conviction and sentence. However, the court rejected his bail application, and he will need to be immediately remanded pending the appeal proceedings.

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This article does not provide investment advice without a license! Hong Kong financial internet celebrity's Telegram paid group causes trouble, sentenced to six weeks in prison, first appeared on Chain News ABMedia.