The SFC Has Flagged These Brokers. What This Means for You
The public has been cautioned about the following brokers by the Securities and Futures Commission and the SFC. The purpose of these cautions is to shield the public against financial scams and should be heeded carefully.
There are sufficient grounds to seriously suspect any of these brokers, even though it hasn’t been established beyond a reasonable doubt that they are dishonest. A few brokers on this list may have been charged with a crime, while others may have received regulatory penalties. Some have only been marked, but it’s still not worth the risk to collaborate with them.
Securities and Futures Commission (SFC)
The independent Securities and Futures Commissions (SFC) of Hong Kong is in charge of managing brokers and other financial firms as well as market regulation. It advocates for and informs customers about financial services and goods in addition to enforcing the rules that have been passed by the government. Broker licenses are issued by the SFC, which has the authority to cancel them and take further disciplinary measures in the event of numerous consumer complaints or evidence of violations.
Why Were These Brokers Flagged by the SFC?
SFC warnings most commonly arise for the reasons listed below:
- Unlicensed
- False claims
- Clone broker
- Non-compliance
- Numerous customer complaints
- Legal action against the broker
The fact that a broker lacks a license, is operating under an expired license, or has a subpar license is among the most frequent grounds for an SEC complaint against them. If a dubious broker is bringing in clients from a region it isn’t authorized to serve, the SFC will also issue alerts.
A large number of brokers on this list are clone brokers, which means they have taken on a name like that of a broker that is regulated. The plan is to divert clients away from the real business and onto their fraudulent offerings.
If brokers don’t comply with regulations, they are likely to get flagged by the SFC. This can be for a variety of reasons, from charging unauthorized fees to engaging in questionable activities.Â
Large amounts of complaints from unhappy consumers to the SFC may result in their designation as a possible fraud. Additionally, the SFC will notify the public if a broker is the target of legal action.