The Securities and Futures Commission (SFC) has issued a restriction notice to Kingston Securities Limited (Kingston), prohibiting it from dealing with or processing certain assets held in a client account that belongs to a listed corporation’s board member, who is suspected of committing misconduct and breaching his director’s duties (Notes 1 and 2).
The SFC is not investigating Kingston which has cooperated with the SFC’s investigation. The restriction notice does not affect Kingston or its other clients.
The restriction notice prohibits Kingston, without the SFC’s prior written consent, from disposing of or dealing with, assisting, counselling or procuring another person to dispose of or deal with certain assets in any way in the account up to the amount stated in the notice. Kingston is also required to notify the SFC if it receives any instructions regarding the prohibitions specified above.
The SFC considers that the issue of the restriction notice, which preserves the assets in the account, is necessary to ensure that there will be funds available to meet any potential order made by the Court in legal proceedings that may be brought by the SFC, and is desirable in the interest of the investing public or in the public interest.
Notes:
- The SFC issued the restriction notice under sections 204 and 205 of the Securities and Futures Ordinance (SFO).
- Kingston is a corporation licensed under the SFO to carry on Type 1 regulated activity.
