繁

SFC issues restriction notice to a broker to freeze client accounts linked to suspected market manipulation

Issue date: 2020-12-23 17:27:14

The Securities and Futures Commission (SFC) has issued a restriction notice to CNI Securities Group Limited (CNI), prohibiting it from dealing with or processing certain assets held in three client accounts, which are related to suspected market manipulation in the shares of a company listed on The Stock Exchange of Hong Kong Limited (Notes 1 & 2).

The restriction notice prohibits CNI, without the SFC’s prior written consent, from disposing of or dealing with, or assisting, counselling or procuring another person to dispose of or deal with, any assets in any way in the client accounts up to a certain amount, including: (i) entering into transactions for any securities; (ii) processing any withdrawals or transfers of securities and/or cash or any transfers of money arising from the disposal of securities; (iii) disposing of or dealing with any securities and/or cash on the instructions of any authorized person of the client accounts or by any person acting on their behalf; and (iv) assisting another person to dispose of or deal with any relevant property in a specified manner.  CNI is also required to notify the SFC if it receives any of the abovementioned instructions.

The SFC considers that the issuance of the restriction notice is desirable in the interest of the investing public and in the public interest.

The SFC’s investigation is continuing.

End

Notes:

1. The SFC issued the restriction notice pursuant to sections 204 and 205 of the Securities and Futures Ordinance (SFO).
2. CNI is a corporation licensed under the SFO to carry on business in Types 1, 2 and 4 regulated activities.

Source: SFC