BCSC panel dismisses illegal insider trading allegations against analyst
VANCOUVER, July 16, 2015 /CNW/ - A British Columbia Securities Commission (BCSC) panel has dismissed insider trading allegations against Hon Seng Lum (also known as Victor Lum).The panel also dismissed staff's application for orders in the public interest against Victor Lum and his sister, May Lee Chan Lum.
In a notice of hearing issued July 11, 2014, BCSC staff alleged that while Victor Lum was in a special relationship with Baja Mining Corp., he traded, and recommended to his sister to trade, in shares of Baja. Baja is a B.C. reporting issuer with its head office and management located in Vancouver, B.C. At all material times, Baja had its securities listed on the Toronto Stock Exchange and was quoted on the OCTQX.
During the relevant period, Victor Lum was employed by Mount Kellett Capital (Hong Kong) Limited, a research center operated by Mount Kellett Capital Management LP, a global institutional investor. Hon Seng analysed and evaluated natural resource investments for MK Hong Kong. A condition of his employment was that he not trade in companies that he was evaluating.
In its decision, the panel dismissed the insider trading allegations, stating that, "the Executive Director has not established on the balance of probabilities that Victor Lum had knowledge of material information that had not generally been disclosed prior to the sale of Baja shares."
Staff also alleged that Victor Lum and May Lum's conduct was contrary to the public interest, and requested the panel to issue an order. The panel disagreed, and dismissed the conduct contrary to the public interest allegations against both.
You may view the decision on our website, www.bcsc.bc.ca, by typing Hon Seng Lum, May Lee Chan Lum, or 2015 BCSECCOM 189 in the search box. You can find information about disciplinary proceedings in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
For further information: Media Contact: Richard Gilhooley, Media Relations, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free),
