SFC bans Lui Pak Tong for life, fines $17.43 million for misconduct

SFC HK Enforcement News

Filed March 24th, 2026

Detected March 25th, 2026

Summary

The Securities and Futures Commission (SFC) has banned Lui Pak Tong for life and fined him $17.43 million for misconduct. Lui, a former licensed representative, illegally extended unsecured loans from a fund he managed to a company he controlled, transferring a significant portion of the proceeds to himself and connected persons.

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What changed

The Securities and Futures Commission (SFC) of Hong Kong has issued a lifetime ban and a fine of $17.43 million against Lui Pak Tong, a former licensed representative of Thunder Capital Limited. The SFC found that between September 2017 and June 2020, Lui misused his position as an investment analyst to cause a fund managed by Thunder to extend five unsecured loans totaling $22.5 million to a company under his control. He failed to disclose his conflicts of interest and ensure fair treatment for the fund and its investors, ultimately pocketing $17.43 million in profits while the fund only received minimal interest payments.

Lui's conduct has been deemed wilful and dishonest, questioning his fitness and properness to be licensed and breaching the Code of Conduct. The SFC's decision to ban him permanently and impose a substantial fine aims to protect the investing public and uphold market integrity. Regulated entities should review their internal controls regarding conflicts of interest, loan approvals, and disclosure requirements, particularly where individuals have control over multiple entities involved in transactions.

What to do next

Review internal controls for conflicts of interest in lending and investment activities.
Ensure full disclosure of personal interests in transactions involving managed funds.
Verify fair treatment of fund investors in all financial dealings.

Penalties

Lifetime ban from the industry and a fine of $17.43 million (equivalent to profit gained from misconduct).

Source document (simplified)

SFC bans Lui Pak Tong for life and fines him $17.43 million for misconduct

24 Mar 2026

The Securities and Futures Commission (SFC) has prohibited Mr Lui Pak Tong (also known as Patrick Lui), a former licensed representative of Thunder Capital Limited (Thunder), from re-entering the industry for life.

The SFC also fined Lui $17.43 million, equivalent to the profit he gained from his misconduct (Notes 1 and 2).

The SFC’s investigation found that, between September 2017 and June 2020, Lui, in his official capacity as Thunder’s investment analyst, caused a segregated portfolio of a fund managed by Thunder (Fund) to extend five unsecured loans totalling $22.5 million (Loans) to a company under his control (Company). In this connection, he recommended to Thunder’s Investment Committee that the Fund extended the Loans to the Company without disclosing the conflicts of interest arising from his involvement in the Company and failed to ensure fair treatment of the Fund and its investors.

The SFC’s investigation also revealed that Lui had in fact established Thunder, the Fund and the Company with his associates, and all three entities were effectively under his control. Lui subsequently caused a substantial portion of the Loan proceeds that the Company received to be transferred to himself or persons connected with him, including his wife. In the end, the Fund only received $5.07 million in interest payments from the Company, while Lui and his connected persons pocketed $17.43 million.

The SFC considers Lui’s conduct to be wilful and dishonest, thereby calling into question his fitness and properness to be licensed. His conduct also constitutes breaches of the Code of Conduct and the Fund Manager Code of Conduct (Note 3).

In determining the sanctions against Lui, the SFC took into account all relevant circumstances, including:

Lui exploited the Fund’s investors and gained a profit of $17.43 million at their expense; and
excluding Lui from the industry is necessary to safeguard the investing public and uphold market integrity. End

Notes:

Lui was accredited to Thunder as a licensed representative for Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance between 25 July 2017 and 31 August 2020. Lui is currently not licensed by the SFC.
Thunder changed its name to Yupei Fortune Capital Limited in February 2021. Its licence with the SFC was revoked on 31 July 2024.
Please refer to the Statement of Disciplinary Action for the relevant regulatory requirements. A copy of the Statement of Disciplinary Action is available on the SFC website

Page last updated 24 Mar 2026