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Kung Yiu Fai, Ronald, CPA
The matter concerns an alleged failure by Kung to observe
the confidentiality requirement binding to members of
the Council of the Institute. In an article written by Kung
which was published in the Hong Kong Economic Journal
on 16 November 2012, some of the contents reflected
discussions in a Council meeting. However, he did not seek
prior approval to disclose the discussions. At the relevant
time, Kung was an elected Council member. He accepts
that his actions fell short of the behaviour expected of a
Agreement: The Council has agreed with Kung that:
1. The disciplinary proceedings against Kung be stopped;
2. A formal letter of disapproval be issued to Kung; and
3. Kung pays a lump sum of HK$300,000 to the Institute.
Having considered Kung’s admission, the Council considers
that it is in the best interests of the public and the
profession to bring this matter to a conclusion at this time.
Resolution by Agreement
Lai Man Shing, Stephen, CPA (practising)
Complaint: Failure or neglect to observe, maintain or
otherwise apply sections 450.10, 450.12 and 450.22 of the
Code of Ethics for Professional Accountants.
Lai arranged the sending of unsolicited emails to
promote the services of his practice. In addition, Lai made
misleading statements in the promotional emails and
certain websites advertising his services. He used “CPA” in
conjunction with names of his deregistered practices, which
may cause readers to misunderstand that those practices
were still registered CPA firms. Lai also made a misleading
claim in the webpages that his practice could “guarantee”
the opening of bank accounts in Hong Kong for its clients.
Regulatory action: In lieu of further proceedings, the
Council concluded that the following should resolve
1. Lai acknowledges the facts of the case and his non-
compliance with the relevant professional standards;
2. Lai be reprimanded; and
3. Lai pays an administrative penalty of HK$50,000 and
costs of HK$10,000.
Information on the Institute’s complaint handling process
and guidelines for the resolution are available at the
Institute’s website under the “Compliance” section at:
Remembering M.B. Lee
The Institute notes with regret the passing of
Lee Man-ban, one of the founding members
of the Hong Kong Institute of CPAs, and
a lifelong advocate of rehabilitation and
community service. He passed away on
Lee gained his accountancy qualification
in 1959, starting his career as a taxation clerk
for the Hong Kong government, and then
later establishing his own firm, M.B. Lee &
Co. Certified Public Accountants in 1962.
He was one of the founders of the Institute,
then known as the Hong Kong Society of
Accountants, in 1973.
He was the chairman of the Administration
and Finance Committee from 1973 to 1976,
which was instrumental for the HKSA to build
up its human and financial resources in the
early days. He also took part in the Registration
and Practising Committee as a member to take
care of the statutory functions of the HKSA.
As well as playing a part in the Institute’s
formation, Lee had a strong belief in
rehabilitation. He was the chairman of the
Hong Kong Society for Rehabilitation from
1980 to 2010 and immediate past president
from 2010 to 2016; and honorar y president
of the Hong Kong Arthritis & Rheumatism
Foundation. For his dedication to ser ving the
local community, he was made a Justice of the
Peace in 1982, awarded an MBE in 1992, and a
Silver Bauhinia Star in 2001. In 2010, Lee was
also made an honorar y fellow of the University
of Hong Kong.
The Institute also notes with regret the
passing of Chan Kwok-shum, Eddie and
Lo Kam-hon, Gary.
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