The Securities and Futures Commission of Hong Kong has reprimanded and fined BOCOM International Securities a total of $19.6 million over a range of multiple regulatory breaches, including improper handling of third-party fund deposits and failures to maintain and implement a margin lending and margin call policy.
The SFC found
extensive deficiencies in the broker's margin lending and margin call policy
between December 2012 and November 2016, including failures relating to policy
enforcement, poor documentation, recordkeeping, margin collection processes, client
communications and a lack of segregation of key duties and functions.
breached primary rules such as concerning authorization of transactions and
client complaints, SFC further added.
In defense, a spokeswoman for BOCOM International has released an email statement stating, “BOCOM International Securities ... has taken and will take a series of optimization measures to address the deficiency pointed out by Hong Kong’s SFC, aiming to improve management and control mechanism and ensure compliance”.
Source - Regulation Asia
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