The Securities and Futures Commission (SFC) has issued a restriction notice to Global Group Securities Limited (GGSL) to preserve client assets held by the broker (Note 1).
GGSL is prohibited, without prior written consent from the SFC, from (i) carrying on any business, whether directly or through agents, which constitutes regulated activities for which it is licensed under the SFO; and (ii) disposing of, dealing with, assisting, counselling or procuring another person to dispose of or deal with any property held by it or held on behalf of its clients until further notice.
The SFC considers that the issue of the restriction notice is desirable in the interest of the investing public or in the public interest.
The SFC’s investigation is ongoing.
Note:
The restriction notice is issued pursuant to sections 204 and 205 of the Securities and Futures Ordinance (SFO). GGSL is a corporation licensed under the SFO to carry on Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. GGSL’s licence to carry on Type 4 regulated activity (advising on securities) is subject to the condition that GGSL shall only provide services to professional investors as defined in the SFO and its subsidiary legislation.
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