SFC issues restriction notices to two brokerages to freeze accounts of client involved in suspected corporate misconduct

14 Aug 2020



The Securities and Futures Commission (SFC) has issued restriction notices to China Gather Wealth Financial Company Limited (China Gather Wealth) and Power Securities Company Limited (Power Securities), prohibiting them from dealing with or processing certain assets held in the client accounts which are beneficially owned by an individual who is suspected of committing misconduct and breaching his duties towards a listed company (Notes 1 & 2).

The SFC is not investigating China Gather Wealth and Power Securities, both of which have cooperated with the SFC’s investigation.  The restriction notices do not affect them or their other clients.

The restriction notices prohibit China Gather Wealth and Power Securities, 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.  Both brokerages are also required to notify the SFC if they receive any of these instructions.

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 and in the public interest.

End

Notes:

  1. The SFC issued the restriction notices under sections 204 and 205 of the Securities and Futures Ordinance (SFO).
  2. Both China Gather Wealth and Power Securities are corporation licensed under the SFO to carry on Type 1 regulated activities.

 



Page last updated : 14 Aug 2020