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

The Securities and Futures Commission (SFC) has taken regulatory action by issuing restriction notices to Futu Securities International (Hong Kong) Limited (Futu) and Interactive Brokers Hong Kong Limited (Interactive). The notices prohibit these brokers from engaging in any transactions or processing assets held in client accounts belonging to a former member of the board of directors of a corporation listed on the Stock Exchange of Hong Kong. This individual is suspected of engaging in corporate misconduct and breaching their fiduciary duty to the corporation. It’s important to note that the SFC is not investigating Futu or Interactive, as both brokers have cooperated with the SFC’s investigation. The restriction notices have no impact on these brokers or their other clients. The notices specifically prevent Futu and Interactive from disposing of or dealing with any assets in the designated accounts without prior written consent from the SFC. The brokers are also required to inform the SFC if they receive any instructions related to the restrictions. The SFC’s objective in issuing these restriction notices is to preserve the assets in the affected accounts. This ensures that sufficient funds will be available to meet any potential court orders in future legal proceedings that may be initiated by the SFC. The action taken by the SFC is considered necessary to safeguard the interests of the investing public and promote the overall public interest. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR77