SFC Issues Restriction Notices to Brokers Amid Suspicious Activity Concerns

Published On February 26, 2019

The Hong Kong Securities and Futures Commission (SFC) has issued restriction notices to three brokers amidst allegations that their clients have engaged in suspicious activity.

The three brokers, Changjang Securities Brokerage (HK) Limited, Haitong International Securities Company Limited and Kingston Securities Limited, have been the subject of an ongoing investigation into market misconduct. The restriction notices prohibit brokers from dealing with, or processing, certain assets held in various client accounts related to the suspected disclosure of false or misleading financial information […] which was likely to induce transactions.

The notices, which were issued under section 204 of the Securities and Futures Ordinance, will not impact the broker’s operations, nor their other clients that are not suspected of market misconduct.