SFC issues Restriction Notice to a broker to stop two clients from withdrawing shares and transferring money connected with suspected insider dealing

20 Sep 2016



The Securities and Futures Commission (SFC) has issued a Restriction Notice to BOCI Securities Limited (BOCI) prohibiting it from processing shares and/or money held in two client accounts that hold the proceeds of suspected insider dealing (Notes 1 & 2).

BOCI is not subject to the SFC’s investigation into suspected insider dealing and the Restriction Notice does not affect BOCI’s operations or its other clients.  BOCI has rendered full assistance to the SFC during the investigation.

The SFC considers that the issue of the Restriction Notice, which prevents dissipation of the suspected proceeds of insider dealing held in the two accounts, is desirable in the interest of the investing public or in the public interest.

The SFC’s investigation is continuing.

End

Notes:

    1. The Restriction Notice is issued under sections 204 and 205 of the Securities and Futures Ordinance (SFO).  It prohibits BOCI, without prior written consent from the SFC, from processing any instructions from the two clients or anyone authorized to operate the accounts with respect to the shares of a Hong Kong-listed company, including: (i) withdrawing the shares and/or transferring monies arising from the disposal or the cancellation of the shares; and/or (ii) disposing or dealing with the shares.  BOCI is also required to notify the SFC upon receipt of any of these instructions.
    2. BOCI is a corporation licensed under the SFO to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 4 (advising on securities) and Type 5 (advising on futures contracts) regulated activities.


Page last updated : 20 Sep 2016