The Securities and Futures Fee (SFC) has reprimanded and fined Changjiang Asset Administration (HK) Restricted (CJAM) $3.4 million for regulatory breaches and inside management failings in relation to segregation of consumer cash and provision of statements of accounts to purchasers.
The regulator discovered that between Might 2015 and August 2017, CJAM had:
- under-segregated consumer cash to the extent of $300 to $1.05 million on a number of events;
- did not segregate consumer cash it had acquired in quantities starting from $651,518 to $8.5 million inside the prescribed time restrict on three events; and
- failed to right away notify the SFC after it turned conscious of its under-segregation of consumer cash.
In doing so, CJAM breached the Securities and Futures (Consumer Cash) Guidelines and the Code of Conduct.
CJAM additionally breached the Securities and Futures (Contract Notes, Statements of Account and Receipts) Guidelines and the Code of Conduct as a result of the SFC’s investigation revealed that CJAM had issued inaccurate statements of accounts to 3 purchasers between December 2016 and February 2017 and failed to offer statements of accounts to 4 purchasers inside the prescribed time restrict on 19 events between January and June 2017.
In deciding the disciplinary sanction, the SFC took into consideration all related circumstances, together with CJAM’s acceptance of legal responsibility and in any other case clear disciplinary file.