Compliance Corner: Hong Kong - SFC

Editorial Staff

18 August 2020

Hong Kong, Securities and Futures Commission
The has issued restriction notices to China Gather Wealth Financial Company and Power Securities Company. They are banned from dealing with or processing certain assets held in the client accounts which are beneficially owned by an individual who is suspected of committing misconduct and breaching his/her duties towards a listed company.

However, the regulator said that it is not investigating China Gather Wealth and Power Securities, both of which have cooperated with the SFC’s investigation. The restriction notices do not affect them or their other clients.

The restriction notices prohibit China Gather Wealth and Power Securities, without the SFC’s prior written consent, from disposing of or dealing with, assisting, counselling or procuring another person to dispose of or deal with certain assets in any way in those accounts. Both brokerages are also required to notify the SFC if they receive any of these instructions, the SFC said in a statement late last week.

“The SFC considers that the issue of the restriction notices, which preserves the assets in those accounts, is desirable in the interest of the investing public and in the public interest,” it added.