The Securities & Futures Commission has suspended Hang Tung Securities former responsible officer Goh Chee Liong's licence as a representative, and the approval for him to act as a responsible officer for nine months.

The disciplinary action follows the commission's investigation which revealed Goh failed to implement a proper accounting and settlement system in Hang Tung and to properly supervise the firm's settlement and accounting functions.

He had also permitted the use of either third-party cheques or other clients' transactions/cash balance to settle the outstanding balance in the account of an account representative's sister at Hang Tung.

From July 2000 to April 2007, an account representative accredited to Hang Tung used her sister's account at Hang Tung to carry out personal trades in securities. She started incurring substantial trading losses in her sister's account in February 2006 and losses in that account continued to rise since then.

Due to Goh's failure, Hang Tung suffered a loss of $3.8 million.