The Securities & Futures Commission has fined Chan Wang-fai $930,000 and revoked his licence for misusing confidential information about his client's trading intentions to make a profit and at his client's expense.

Chan's client, a listed company, had instructed him to repurchase its own shares from the open market at a certain price in December 2007. After receiving the instruction, Chan traded in the company's shares through his girlfriend's accounts, but without her knowledge, on around 20 occasions between December 2007 and November 2008.

Chan bought the company's shares from the market at a slightly lower price than that prescribed by his client and subsequently sold them to his client at the prescribed price.

Nearly all of the sell orders matched with the client's buy orders and were almost always at the highest price of the day. Chan profited approximately $930,000 from the trades.