The SFC has reprimanded and fined Ruifeng Securities Limited (RSL) $5.2 million over failures related to fund management and account opening procedures. RSL invested a significant portion of a fund’s assets into financial instruments linked to a Mainland property developer, despite identifying downside factors. The company also failed to disclose material information about the fund. In addition, the SFC suspended the license of Mr. Fang Zhi, RSL’s responsible officer, for 10 months. RSL’s failures were attributed to Fang’s failure to discharge his duties. The SFC considered RSL’s remedial actions and cooperation in determining the sanctions.
Resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR143