Securities and Futures Commission (SFC) in Hong Kong has issued a warning against Huanying International Limited for illegal financial brokerage services. The regulator is concerned over the increasing unlawful providers thus prompting it to issue one more warning. The move also comes amidst the backdrop of increasing complaints received from investors.
SFC cautions public
The SFC has cautioned the general public against Huanying International since it is providing trading services illegally. The regulator indicated that the company, which is a multi-asset broker firm, is not authorized to offer such trading services. The firm is allegedly offering FX services with a separate entity known as Circleforex. This would mean that there are more risks for investors’ money.
The laws in Hong Kong are strict in providing securities services to the general public. Accordingly, selling securities to the public is possible only to a client of a regulated firm. Any unregulated firm selling them is totally prohibited. Additionally, brokers are allowed to invite only the existing clients to sell either investment plans or associated services.
The watchdog has included Huanying in the warning list as the latest FX broker. Simultaneously, the regulator also posted a statement on its portal on the increasing solicitations by illegal entities. The SFC has issued its warning again with the sole objective of protecting investors’ money. There is a threat that these investors could use intermediary and acquire any assets without going through the background of them completely.
It is also a fact that the regulator issues warning about scams operation happening in the country regularly since it is one of the principal financial markets in the region. However, what is new in the latest warning is that it has named businesses and listed features that are promoted without proper licensing. These are aimed at targeting investors in the country.
The SFC has also not spared the initial coin offerings (ICOs) market and issued a warning most recently. The regulator has cautioned investors that most of the funds raised through securities token offerings (STOs) are dubious in nature. The agency pointed out that STOs are structured in such a way that it could easy escape the scrutiny. The authority also cautioned investors about the hacking and fraud happening in cryptocurrency investments.