Hong Kong Regulator Bans BNP Paribas’s Kim Bum Suk for 27 Months

The Securities and Futures Commission (SFC) has banned Mr Kim Bum Suk, former relevant individual of BNP Paribas Wealth Management and BNP Paribas (collectively, BNP), from re-entering the industry for 27 months from 29 March 2022 to 28 June 2024.

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The disciplinary action came after an SFC investigation following a self-report from BNP and referral of findings from the HKMA.

The SFC found that from March 2015 to August 2017, Kim operated a client account discretionarily without obtaining written authorization under the guise of pre-signed client instruction forms.

To this end, he misled BNP by creating a false appearance that the instructions for buying and selling investment products originated from the client who was arranged to pre-sign blank client instruction forms and risk mismatch acknowledgement letters when in fact he was operating the account discretionarily.

He adopted a similar practice with three other clients and asked them to pre-sign blank client instruction forms so that he could place trades for their accounts without having to inform them in advance. He also deceived BNP with false call reports that he had met or contacted the clients to give them investment advice and/or take order instructions from them when in fact he had not.

In doing so, Kim not only breached the regulatory provisions on the authorization and operation of discretionary accounts and suitability requirements under the Code of Conduct, but also circumvented BNP's policies and procedures in relation to discretionary accounts and suitability.

The SFC considers that Kim is not fit and proper to be a regulated person as his conduct was deceptive and dishonest, and casts doubt on his character and reliability as well as his ability to carry on regulated activities competently and honestly.