Hong Kong regulator Securities and Futures Commission slaps 10-year and two-year ban on two Morgan Stanley advisors for misleading clients.

The Hong Kong Securities and Futures Commission has banned two former Morgan Stanley advisors for giving clients misleading information.

Christopher Ma Chun Leong and Wong Man Chung are banned from re-entering the industry for 10 years and two years, respectively. Leong's ban began in 28 May 2014, while Chung's started in 30 May. 

The actions follow an investigation by the regulator which found that Ma, the supervisor of a programme trading desk, and Wong, a trader under Ma, acted against the interests of clients and taken advantage of order executions of institutional clients on the Stock Exchange of Hong Kong. According to a filing on the SFC website, Ma and Wong cancelled trades executive for clients and re-filled wthem with trades at lower stock prices. 

The cancellations and reallocations involved over 2,500 trades in 20 stocks, causing institutional clients to pay a total of around $8 million more for their shares in 2009 and 2010. 

Both are no longer licensed representatives. Morgan Stanley reported the wrongdoings to the SFC and  has returned $8 million in cash or commission credit to clients.