Hong Kong SFC Fines Central Wealth Securities Investment $128,000 for Overstating Liquid Capital Due to Accounting & Calculation Error in Financial Re
Hong Kong, Asia's leading financial centre Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Caproasia - Learn more Caproasia Access | Events | Summits | Register Events | The Financial Centre The 2024 Investment Day | 2024 Family Office Summits | Family Office Circle This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $3 billion. 
Hong Kong SFC Fines Central Wealth Securities Investment $128,000 for Overstating Liquid Capital Due to Accounting & Calculation Error in Financial Returns with Deficit of $207,000 to $6.29 Million, Failed to Comply with Financial Resources Rules FRR Mainly Due to Failure to Appoint Qualified & Competent Persons to Prepare & Review Financial Returns 20th December 2023 | Hong Kong
The Hong Kong Securities & Futures Commission (SFC) has fined Central Wealth Securities Investment $128,000 (HKD 1 million) for overstating liquid capital due to accounting & calculation error in financial returns with deficit ranging from $207,000 to $6.29 million (HKD 1.62 million to HKD 49.08 million) between 2019 to 2020, failing to comply with the Financial Resources Rules (FRR) mainly due to failure to appoint qualified and competent persons to prepare and review the financial returns. Hong Kong SFC: “Central Wealth’s failure to ensure the accuracy of the financial returns was mainly attributable to its failure to appoint qualified and competent persons to prepare and review the financial returns. In particular, the preparers of the financial returns did not have sufficient knowledge and experience to perform their roles. In addition, Central Wealth’s responsible officers responsible for reviewing and signing off the financial returns were not familiar with the FRR requirements and failed to identify the errors in the financial returns submitted to the SFC.” More info below:
“ Hong Kong SFC Fines Central Wealth Securities Investment $128,000 for Overstating Liquid Capital Due to Accounting & Calculation Error in Financial Returns with Deficit of $207,000 to $6.29 Million, Failed to Comply with Financial Resources Rules Mainly Due to Failure to Appoint Qualified & Competent Persons to Prepare & Review Financial Returns “
- Article continues below - Quick Links, Ads & Announcements Caproasia Access | Events | Summits | Register Events | The Financial Centre The 2024 Investment Day | 2024 Family Office Summits | Family Office Circle Sign Up Basic Member: $5 Monthly | $60 Yearly Newsletter Daily 2 pm (Promo): $20 Monthly | $180 Yearly (FP: $680) The 2024 Investment Day | 28/2 HK & 6/3 SG Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Taking place on 28th February 2024 in Hong Kong, 6th March 2024 in Singapore. Visit | Register here The 2024 Family Office Summit20th March / 3rd April HK & 3rd / 10th April SG Join 100+ single family offices & family office professionals in Hong Kong & Singapore Links: 2024 Family Office Summit | Register here
Hong Kong SFC Fines Central Wealth Securities Investment $128,000 for Overstating Liquid Capital Due to Accounting & Calculation Error in Financial Returns with Deficit of $207,000 to $6.29 Million
Hong Kong, Asia’s leading financial centre 18th December 2023 – The Securities and Futures Commission (SFC) has reprimanded and fined Central Wealth Securities Investment Limited (Central Wealth) $1 million for failures in complying with the Securities and Futures (Financial Resources) Rules (FRR) (Note 1).
- The SFC found that Central Wealth made various accounting and calculation errors in the financial returns submitted to the SFC under the FRR which resulted in overstating its liquid capital between April 2019 and December 2020 (Relevant Period). After eliminating the errors, it came to light that Central Wealth’s required liquid capital was in deficit – ranging from $1.62 million to $49.08 million – for eight months during the Relevant Period, contrary to FRR’s requirement (Note 2).
- Central Wealth’s failure to ensure the accuracy of the financial returns was mainly attributable to its failure to appoint qualified and competent persons to prepare and review the financial returns. In particular, the preparers of the financial returns did not have sufficient knowledge and experience to perform their roles. In addition, Central Wealth’s responsible officers responsible for reviewing and signing off the financial returns were not familiar with the FRR requirements and failed to identify the errors in the financial returns submitted to the SFC.
The SFC is of the view that Central Wealth’s conduct was in breach of the FRR and Code of Conduct (Notes 3 & 4). In deciding the sanction, the SFC has taken into account all relevant circumstances, including:
- the duration and extent of Central Wealth’s failures;
- Central Wealth engaged an independent reviewer upon the SFC’s request to assess its systems and controls over financial reporting and to verify the accuracy of the financial returns it prepared;
- Central Wealth’s remedial measures;
- Central Wealth’s cooperation with the SFC in resolving the SFC’s concerns; and
- Central Wealth’s otherwise clean disciplinary record.
Read: Statement of Disciplinary Action
Notes:
Managing $20 million to $3 billion. Investing $3 million to $300 million. For Investment Managers, Hedge Funds, Boutique Funds, Private Equity, Venture Capital, Professional Investors, Family Offices, Private Bankers & Advisors, sign up today. Subscribe to Caproasia and receive the latest news, data, insights & reports, events & programs daily at 2 pm. Join Events & Find Services Join Investments, Private Wealth, Family Office events in Hong Kong, Singapore, Asia-wide. Find hard-to-find $3 million to $300 million financial & investment services at The Financial Centre | TFC. Find financial, investment, private wealth, family office, real estate, luxury investments, citizenship, law firms & more. List hard-to-find financial & private wealth services. Have a product launch? Promote a product or service? List your service at The Financial Centre | TFC. Join interviews & editorial and be featured on Caproasia.com or join Investments, Private Wealth, Family Office events. Contact us at [email protected] or [email protected] Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Quick Links Caproasia Access | Events | Summits | Register Events | The Financial Centre The 2024 Investment Day | 2024 Family Office Summits | Family Office Circle 2021 Data Release 2020 List of Private Banks in Hong Kong2020 List of Private Banks in Singapore 2020 Top 10 Largest Family Office2020 Top 10 Largest Multi-Family Offices2020 Report: Hong Kong Private Banks & Asset Mgmt - $4.49 Trillion2020 Report: Singapore Asset Mgmt - $3.48 Trillion AUM For Investors | Professionals | Executives Latest data, reports, insights, news, events & programs Everyday at 2 pm Direct to your inbox Save 2 to 8 hours per week. Organised for success Register Below For CEOs, Heads, Senior Management, Market Heads, Desk Heads, Financial Professionals, Investment Managers, Asset Managers, Fund Managers, Hedge Funds, Boutique Funds, Analysts, Advisors, Wealth Managers, Private Bankers, Family Offices, Investment Bankers, Private Equity, Institutional Investors, Professional Investors Get Ahead in 60 Seconds. Join 10,000 + Save 2 to 8 hours weekly. Organised for Success. Sign Up / Register
You are:
InvestorProfessionalFamily OfficeExecutive
Select:
SubscriptionMembershipEvents
Interests / Events / Summits / Roundtables / Networking:
Professional InvestorPrivate WealthFamily OfficePrivate BankingWealth ManagementInvestmentsAlternativesPrivate MarketsCapital MarketsESG & SICEO & EntrepreneursTax, Legal & RisksHNW & UHNWs Insights
Your Name*
Company*
Job Title*
Email 1 (Work / Personal)*
Email 2 (Work / Personal)
Country
New to Caproasia Learn More | Sign Up | Subscribe | Register Events Caproasia Users - Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
- Professional Investor
- Family Office
- HNW Partnership
- Family Office Circle
- Family Office Networking
- Family Office Roundtable
- The Family Office Summit
- March 2024 - Hong Kong
- March 2024 - Singapore
- June 2024 - Hong Kong
- June 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Visit: The Investment Day | Register: Click here
- The Investment Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
Owl Media Group takes pride in providing social-first platforms which equally benefit and facilitate engagement between businesses and consumers and creating much-needed balance to make conducting business, easier, safer, faster and better. The vision behind every platform in the Owl Media suite is to make lives better and foster a healthy environment in which parties can conduct business efficiently. Facilitating free and fair business relationships is crucial for any thriving economy and Owl Media bridges the gap and open doors for transparent and successful transacting. No advertising funds influence the functionality of our media platforms because we value authenticity and never compromise on quality no matter how lucrative the offers from advertisers may seem.