SFC reprimands and fines China Industrial Securities International Brokerage Limited $3.5 million for internal control failures


China Industrial Securities International Brokerage Limited (China Industrial) has been fined $3.5 million by the Securities and Futures Commission (SFC) due to internal control failures. The SFC conducted an investigation and discovered that China Industrial had not effectively implemented its internal policy on post-trade monitoring, leading to inadequate examination of flagged unusual transactions during specific periods. Furthermore, China Industrial failed to adequately document the findings and outcomes of these examinations and lacked effective compliance procedures. Additionally, the company did not meet regulatory requirements regarding the recording of telephone order instructions and failed to supervise its account executives properly. Despite these violations, the SFC considered China Industrial’s cooperation and clean disciplinary record when determining the disciplinary sanction.

Resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR93


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