A disciplinary committee of the Hong Kong Institute of Certified Public Accountants reprimanded Chan Lai Cheung (membership number A05118) on 16 October 2009 and ordered him to pay to the institute a penalty of HK$5,000 due to his failure or neglect to observe, maintain or otherwise apply a professional standard issued by the institute. In addition, Chan was ordered to pay the entire costs and expenses of the disciplinary proceedings totalling HK$92,663.90.
Chan is the sole proprietor of a firm of certified public accountant, Alex Chan and Company. The institute received information in October 2007 indicating that the firm failed to report the non-compliance by an insurance broker with the minimum requirements in respect of keeping of separate client accounts under section 73 of the Insurance Companies Ordinance (Cap. 41) Laws of Hong Kong in its auditors' report for the year ended 31 December 2006. After considering the information available, the institute lodged a complaint against Chan.
The disciplinary committee found, on Chan’s admission, that he failed or neglected to observe, maintain or otherwise apply the institute’s professional standard, namely the Code of Ethics for Professional Accountants, and was guilty of professional misconduct