Hong Kong’s Securities and Futures Commission (SFC) has updated its Alert List and included a further two brokers in the category of unlicensed entities. CVC Groups Private Capital/CVC Ltd and Arthur-Sera Ltd are the latest firms to come under the SFC spotlight as part of the regulator’s attempts to stop unlicensed entities soliciting their services in Hong Kong.
The companies in question were pulled up for being unregulated and not having the required licenses necessary to offer their services.
CVC Groups Private Capital/CVC Ltd
CVC Groups Private Capital/CVC Ltd, which operates via the url www.cvcgroup.com, claims to be based in Hong Kong but according to the SFC, it is not actually located there. Upon further investigation into this entity's financial activities, Finance Magnates found the website to be unavailable but noted that earlier this year, the Jersey Financial Services Commission had issued a statement about the same company after it had made unsolicited calls to potential investors in Europe without the necessary licence.
The company also falsely claimed to be connected to the CVC Capital Partners and CVC Credit Partners companies and funds formed in Jersey.
Indeed, the SFC has pointed out that unlicensed entities often use names similar to legitimate companies to confuse investors.
Arthur-Sera Ltd
The second broker to be added to the SFC Alert List today is retail Forex broker Arthur-Sera Ltd, which provides wealth management solutions for professional and private investors and operates online via www.arthur-sera.com.
According to the SFC, Arthur-Sera Ltd is unlicensed and its Hong Kong address is incomplete, listing only two addresses in Japan and Cayman Islands.
Hong Kong’s financial regulator helps keep investors informed by drawing attention to suspicious operations and unregulated entities that market participants should abstain from doing business with.
The Alert List contains entities which have come to the attention of the SFC because they are unlicensed in Hong Kong and are believed to be, or to have been, targeting Hong Kong investors or claim to have an association with Hong Kong.
On this occasion, the SFC has warned investors not to do business with either of these entities as it may leave them open to risk.
