Hong Kong's Court of Final Appeal has dismissed the appeal of Lo Kam Chung, who was sentenced for setting up a business of advising on securities via Facebook, when he was unlicensed. 

Lo's application was dismissed as it disclosed no reasonable grounds for leave to appeal.

In December 2011, Lo was convicted in the Magistrates Court of carrying on a business of advising on securities via Facebook when he was not licensed by the Securities and Futures Commission.

The court found that between April and November 2010, Lo, upon subscription, gave securities advice under the name of “Peter Sun” to paid subscribers to a private discussion group he had set up on the online media portal.

The SFC identified three subscribers who paid subscription fees of HK$200-HK$300 per month to “Peter Sun” but did not follow his advice.

"The investing public is at risk from unlicensed operators like Lo and it is fortunate in this case that the SFC’s action stopped Lo’s scheme before any investors suffered losses," said the SFC.

He was fined HK$20,000 (US$2,600) and given a community service order of 80 hours. Lo was also ordered to pay the SFC’s investigation costs.

Lo appealed his sentence in May this year to the Court of First Instance, which lowered the fine imposed on him but upheld the community service order.