On November 13, 2025, the SFC reprimanded and fined Tung Tai Securities Company Limited HK$900,000 for unauthorized sales of client securities and transfers of client funds, between September 2019 and February 2020.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On November 13, 2025, the Securities and Futures Commission ("SFC") issued a reprimand and imposed a HK$900,000 fine against Tung Tai Securities Company Limited (Tung Tai) for inadequate client asset protection.
Between September 6, 2019, and February 18, 2020, Tung Tai transferred US$3,301,740 to overseas bank accounts, acting on fraudulent email instructions, despite repeated indicators of potential fraud.
Tung Tai did not implement effective internal controls to prevent client asset theft, fraud, or other unauthorized acts. The company has since taken corrective actions, including strengthening procedural safeguards, compensating affected clients, and conducting an independent review.
The SFC's decision to fine Tung Tai acknowledges the company's remedial actions and clean disciplinary history, but also highlights the importance of robust asset protection measures.
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