The Securities and Futures Commission (SFC) has fined Profitech Securities Limited $3.99 million for failing to comply with financial regulations, including maintaining the required liquid capital of $3 million. An investigation revealed that Profitech improperly repledged client securities without proper authority and provided $15.6 million in financial accommodation to new clients without adequate credit controls. Additionally, the firm failed to report changes in its holding company’s shareholding structure in a timely manner. The SFC’s decision considered Profitech’s repeated failures, the severity of the breaches, and the firm’s cooperation in addressing the issues, including agreeing to an independent review of its internal controls.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR158
