The Securities and Exchange Commission of Hong Kong (SFC) has issued restriction notices to Futu Securities International (Hong Kong) Limited and Interactive Brokers Hong Kong Limited, prohibiting them from trading or processing assets held in their client accounts belonging to a former member the board of directors of a company listed on the Central Board of the Stock Exchange of Hong Kong Limited at the relevant time.
The former board member is suspected of misconduct and breach of duty to the company.
The SFC is not investigating Futu or Interactive, which have co-operated with the SFC investigation. Restriction notices do not affect them or their other customers.
The restriction notices prohibit the two brokers, without the prior written consent of the SFC, from owning, dealing in or assisting, advising or assigning to another person any assets in these accounts up to the amount stated in the notices. They are also required to notify the SFC if they receive instructions regarding the prohibitions set out above.
The SFC considers that the issuing of the restriction notices, which safeguard the assets in these accounts, is necessary to ensure that funds will be available to meet any potential order of the Court in legal proceedings that the SFC may bring, and is in the interest of the investing public and in the public interest.