SFC revokes Axial Capital Management Limited’s licence and suspends its responsible officer for five years


The Securities and Futures Commission (SFC) has taken action against Axial Capital Management Limited (Axial) due to their repeated violations of financial regulations. Axial’s license has been revoked by the SFC for failing to comply with the Securities and Futures (Financial Resources) Rules (FRR), the Securities and Futures Ordinance (SFO), and the Code of Conduct. Additionally, the responsible officer of Axial, Mr. Eugene Chung, has been suspended for five years. The investigation revealed that Axial failed to maintain the required liquid capital for 19 consecutive months and only notified the SFC 18 months after the issue arose. Axial also failed to submit various financial documents within the prescribed periods and disregarded reminders from the SFC. The SFC views Axial’s actions as a breach of regulations and a disregard for the financial resources regime. The SFC holds Chung accountable for Axial’s failures as the firm’s senior management and responsible officer. The SFC considered the prolonged failures, the threat posed to market integrity, Axial’s cooperation in resolving the concerns, and their clean disciplinary record in determining the disciplinary sanctions.

Resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR100


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