The Securities and Futures Commission has reprimanded China Everbright Securities and fined it HK$2.5 million for pledging its clients’ securities with banks for financial accommodation without valid authorization. The SFC found that between April 1, 2018 and August 19, 2018, CESHK relied on expired standing authority given by around 6,841 clients to pledge their securities as collateral in obtaining credit line from three banks in Hong Kong. The standing authority in question had expired on March 31, 2018. By pledging clients’ securities without valid authorization from them, CESHK breached the Securities and Futures (Client Securities) Rules and the Code of Conduct.

Source: The Standard September 29, 2020 10:19 UTC