SFC Flagged Brokers
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?
The subsequent list comprises the predominant causes for SFC warnings.
- Inaccurate assertions
- Genetic replication intermediary
- Failure to comply
- A plethora of client grievances.
- Lawsuit filed against the broker
One of the most common reasons a broker is the subject of a SEC complaint is that it has no license, is working with an expired license or has a third-rate license. The SFC also issues warnings if a shady broker is signing up clients from an area that it isn’t licensed to service.
Have you seen promises that you’ll make 5% a week on your investment. Are some brokers even offering double digit returns? These are examples of misleading claims that dodgy brokers make and may earn them a warning from the SFC.
Many of the brokers on this list are clone brokers, meaning they have adopted a name similar to a regulated broker. The idea is to lure customers from the legitimate entity to their fake services.
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.
When dissatisfied customers complain to the SFC in large numbers, they are likely to earn a listing as a suspected scam. Also, if a broker faces legal action, the SFC will let the public know.