Hong Kong SFC Issues Restriction Notices to Five Brokerages

Hong Kong’s SFC says it issues restriction notices to five brokers, prohibiting them from dealing with or processing certain assets held in 12 trading accounts.

January 26, 2021 | AtoZ Markets – Hong Kong’s Securities and Futures Commission (SFC) on Tuesday announced that it has issued restriction notices to five brokerages – AMC Wanhai Securities Limited, Eddid Securities and Futures Limited, Freeman Securities Limited, Realord Asia Pacific Securities Limited and Solomon JFZ (Asia) Holdings Limited.

What Does the Restriction Notices Prohibit the Brokerages From Dealing?

The SFC restriction notices prohibit the 5 brokerages from dealing with or processing certain assets held in twelve trading accounts, which are related to suspected market manipulation between September 2020 and October 2020 in the shares of a company listed on the Stock Exchange of Hong Kong Limited.

The restriction notices prohibit them, without the SFC’s prior written consent, from disposing of or dealing with, or assisting, counseling, or procuring another person to dispose of or deal with, any assets in any way in the trading accounts including:

  1. entering into transactions in respect of any securities; and/or

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  2. processing any withdrawals or transfers of securities and/or cash or any transfers of money arising from the disposal of securities; and/or

  3. disposing of or dealing with any securities and/or cash on the instructions of any authorized person of the accounts or any person acting on their behalf; and/or

  4.  assisting another person to dispose of or deal with any relevant property in a specified manner.

The brokers are also required to notify the SFC if they receive any of these instructions.

The regulator says it considers that the issue of the restriction notices is desirable in the interest of the investing public and in the public interest. The SFC’s investigation into this matter is continuing.

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