Ernest Chan Tsz Kin, once a responsible officer at Keptain Securities and Asset Management Limited, has lost his licence and been barred from the industry for a decade under an SFC enforcement action announced on 24 August 2026. The Securities and Futures Commission revoked his approval and set the ban to run from 24 August 2026 to 23 August 2036.
According to the SFC, Chan engineered a flattering picture of Keptain's liquid capital between June 2016 and March 2018, filing 15 financial returns that misstated the firm's month-end liquid-capital position to the regulator. On paper, the filings made it look as though Keptain cleared the liquid-capital threshold set by the Securities and Futures (Financial Resources) Rules (FRR).
Dishonoured cheques masked deficits
According to the regulator, in each of the 15 returns Keptain's liquid-capital figure had been propped up by a cheque, 15 in all, drawn either by Chan himself or by companies tied to him.
The cheques landed in Keptain's account near the month-end cut-off, only to bounce days later, before the returns went to the SFC. Strip those bounced cheques out of the sums, the SFC found, and Keptain fell short of the liquid-capital minimum in every one of the months concerned.
The SFC found that Keptain ran liquid capital deficits ranging from about HK$731,000 to HK$3.47 million over 20 months, against a required minimum liquid capital of HK$3 million, and that the firm did not notify the regulator as required. No monetary fine was imposed; the sanction was licence revocation and a 10-year ban.
In its statement, the SFC said: "The SFC considers that Keptain's conduct occurred with Chan's consent or connivance and should be regarded as misconduct on his part."
