FX Broker CLSA Premium Dodges Wind Up Attempt for the Third Time

CLSA Premium Limited (HKG:6877), a forex broker Forex Broker In the forex space, a broker is any company that can provide traders with access to a platform that permits the buying and selling of multiple currencies.The retail forex industry has grown over the past two decades to include every major jurisdiction, which in turn has necessitated new regulatory oversight. Relative to the institutional sector, retail brokers are rather small portion of the greater forex market. However, traders can rely on brokers for leveraged trading in a 24-hour-a-day marke In the forex space, a broker is any company that can provide traders with access to a platform that permits the buying and selling of multiple currencies.The retail forex industry has grown over the past two decades to include every major jurisdiction, which in turn has necessitated new regulatory oversight. Relative to the institutional sector, retail brokers are rather small portion of the greater forex market. However, traders can rely on brokers for leveraged trading in a 24-hour-a-day marke Read this Term headquartered in Hong Kong, has dodged another business wind-up attempt as the majority of shareholders voted against the proposal on Friday.

It was the third wind-up attempt that the broker's shareholders have voted against within the last couple of years.

KVB Holdings, which is one of the shareholders of the broker, moved the resolution to wind up the business last month. In addition, this shareholder made earlier attempts to close the business but failed.

As much as 80 percent of the CLSA shareholders voted against the wind-up resolution, whereas only 20 percent of the shareholders voted in favour. To pass the resolution seeking the company’s closure, at least 75 percent of the votes needed to be in favour.

KVB Holdings itself holds around 14.75 percent of CLSA Premium’s issued share capital.

“As at the date of the EGM, the total number of issued Shares was 2,033,290,000 Shares, which was the total number of Shares entitling Shareholders to attend and vote for or against the Resolution at the EGM,” the notice published after the voting stated.

“It is noted that no parties had indicated in the Circular their intention to vote against or abstain from voting on the Resolution at the EGM.”

A Troubled Broker

CLSA now operates in Hong Kong and Australia. Additionally, the broker had a regulated presence in New Zealand, but it was forced to exit from that market for some serious anti-money laundering (AML Anti-Money Laundering (AML) Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Read this Term) breaches. It even had to pay a monetary fine of NZ$770,000 (around $546,676) to the Kiwi financial market regulator.

Meanwhile, the broker ended the first half of 2021 with around $3.8 million in losses and issued a profit warning earlier this month with approximately HK$57 million in expected annual losses for 2021, Finance Magnates reported earlier.