Hong Kong’s SFC Committee (SFC) has reprimanded and imposes fines of securities series limit $ 2.1 million for regulatory violations related to mismanagement of customers’ money.
SFC’s survey, which followed a referral by Hong Kong exchanges and Clearing Limited (HKEX), found that between February 8, 2021 and July 7, 2022, there were 12 cases where Roofer failed to maintain sufficient funds in its divided client account. In one case, the client account deficit amounted to $ 15.5 million.
These incidents resulted as a result of the roofer using money from the client’s account to cover the marginal calls made or expected to be made by Hkex, the failure to properly manage the daily banks transfer limit and the human error on the part of his staff.
The SFC has concluded that Roofer’s failures are violations of customer money and code of money rules and have decided disciplinary sanctions.
In determining the sentence, the regulator took into account various factors, such as:
- No customer has suffered as a result of roofer failures.
- Roofer has taken corrective actions, including enhancing internal controls and procedures and correction of customer refinement shortly after each incident.
- Roofer’s collaboration with SFC to solve SFC concerns. and
- The lack of a previous disciplinary file of Roofer.