Hong Kong’s Securities and Futures Commission (SFC) has imposed a five-year ban on Richard Charles Heyes, the former head of pan-Asia equities at Citigroup, citing regulatory breaches during his tenure over five years ago.
The SFC noted that between 2008 and 2018, Citigroup Global Markets Asia (CGMAL) had sent misleading messages to clients, exercised weak oversight, and misrepresented trade activities. The firm was fined HK$348.3 million (US$44.76 million) in 2022 for these violations.
Heyes was held personally responsible for the breaches, with the SFC stating that he failed to properly manage his team while pressuring trading desks to grow market share. This lack of oversight allowed subordinates to misrepresent facilitation trades as agency trades to clients, fostering a culture that prioritized revenue over client interests and honesty.
“By exerting pressure on trading desks while ignoring warning signs in emails and reports, Heyes neglected his managerial duties, enabling misconduct to persist within CGMAL,” said Christopher Wilson, SFC executive director of enforcement. Heyes is now barred from returning to the financial industry until September 2030.
Citigroup declined to comment directly on the ban but said it has “implemented significant remedial measures to strengthen compliance and internal controls to address this legacy issue from 2019.”
(Exchange rate: US$1 = HK$7.7813)
