The Securities and Futures Commission (SFC) has issued restriction notices to Emperor Securities Limited (Emperor), CS Wealth Securities Limited (CS Wealth) and CMB International Securities Limited (CMB), prohibiting them from dealing with or processing certain assets held in their client accounts which are beneficially owned by three individuals who are suspected of committing misconduct and breaching their duties towards FingerTango Inc. (Notes 1 to 3).
The SFC is not investigating Emperor, CS Wealth or CMB, all of which have cooperated with the SFC’s investigation. The restriction notices do not affect them or their other clients.
The restriction notices prohibit the three 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 certain assets in any way in those accounts. They are also required to notify the SFC if they receive any instructions regarding the prohibitions specified above.
The SFC will soon commence civil proceedings under section 214 of the SFO in the Court of First Instance against the current or former management team of FingerTango Inc and the three individuals will be named as respondents in the same legal proceedings. The SFC will also seek court orders against the three individuals to pay compensation to FingerTango Inc.
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 or in the public interest.
End
Notes:
The SFC issued the restriction notices under sections 204 and 205 of the Securities and Futures Ordinance (SFO).
FingerTango Inc. is listed on the Main Board of the Stock Exchange of Hong Kong Limited.
Emperor, CS Wealth and CMB are corporations licensed under the SFO to carry on Type 1 and/or Type 4 regulated activities.
Comments