Hong Kong SFC Warns Against Unlicensed Brokerage CW Associates

Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), today issued an update to its Alert List which includes the names of businesses that are unlicensed in Hong Kong and which are believed to have targeted Hong Kong investors.

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Unlicensed Entity

CW Associates joins the growing list of brokerages added by the SFC and follows a similar warning issued by the watchdog about Trading Banks which was also added as an unlicensed entity after providing inaccurate contact details on its website.

The firm states that it works in conjunction with some the largest institutional investors, pension, and hedge funds in the world, providing them with trading support, portfolio management and trading services. It operates via the website www.cwassociates.com. The brokerage claims to be located at 39/F, Sengokuyama Mori Tower, 1-9-10 Roppongi Minato-ku, Tokyo 106-0032, Japan but has been using a Hong Kong bank account in the name of EFTTE Limited for Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term.

Warning

The SFC warns in its statement that unlicensed entities often use names similar to legitimate companies to confuse investors, and while a firm’s website may reveal what appears to be a legitimate financial services outfit, ambiguities relating to the firm’s address and bank account details often raise concerns, prompting the SFC to take action.

Hong Kong’s financial watchdog plays a key role in informing investors about potential scams by drawing attention to illicit operations and unregulated entities that market participants should refrain from doing business with.

Its latest warning about CW Associates is part of its efforts to target unlicensed businesses soliciting their services in Hong Kong.