SFC issues restriction notices to three brokers to freeze client accounts

Hong Kong SFC

The Hong Kong Securities and Futures Commission (SFC) announced that has issued restriction notices to Caitong International Securities Co., Ltd, Pacific Foundation Securities Limited and Yuanta Securities (Hong Kong) Company Limited (the brokers), prohibiting them from dealing with or processing certain assets held in client accounts which are related to suspected market manipulation in the shares of GME Group Holdings Limited on 22 February 2017.

The SFC is not investigating the brokers, which have cooperated with the SFC’s ongoing investigation. The notices do not affect their operations or their other clients.

The notices prohibit the brokers, 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 any assets in any way in the client accounts including:

  1. entering into transactions for any securities; and/or
  2. processing any withdrawals or transferring of securities and/or cash arising from the disposal of securities; and/or
  3. disposing of or dealing with any securities or cash on the instructions of any authorized person of the client accounts or by 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 SFC considers that the issue of the notices is desirable in the interest of the investing public or in the public interest.

The SFC’s investigation is continuing.

The complete announcement can be seen here.

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SFC issues restriction notices to three brokers to freeze client accounts


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