Hong Kong SFC Fines Ruifeng Securities $665,000 for Failure in Fund Management & Accounting Opening Procedures and Suspends Responsible Officer Fang Z
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 Ruifeng Securities $665,000 for Failure in Fund Management & Accounting Opening Procedures and Suspends Responsible Officer Fang Zhi for 10 Months, Investment Analysis Revealed Downside Factors of a China Property Developer But Invested $94.5 Million Representing 90% of the Fund into Related Financial Instruments & Failed to Provide Adequate Disclosure Between 2019 to 2020, Failed to Properly Verify Clients for Non-Face-to-Face Mobile Account Opening Between 2018 to 2020 6th Dec 2023 | Hong Kong
The Hong Kong Securities & Futures Commission (SFC) has fined Ruifeng Securities $665,000 (HKD 5.2 million) for failure in fund management & accounting opening procedures, and suspends Responsible Officer (Fang Zhi) for 10 months. An internal investment analysis (Ruifeng Securities) had revealed downside factors of a China Mainland property developer but Ruifeng Securities invested $94.5 million (representing 90% of the fund) into related financial instruments (China property developer), and failed to provide adequate disclosure between 2019 to 2020. Ruifeng Securities had also failed to properly verify clients for non-face-to-face mobile account opening between 2018 to 2020. Hong Kong SFC: “The disciplinary action follows an SFC investigation into RSL when it acted as an investment manager of a Cayman-incorporated fund between 1 July 2019 and 10 December 2020. The investigation found that as of May 2020, RSL invested about 90 per cent of the fund’s US$94.5 million net asset value into financial instruments linked to a Mainland property developer even after identifying various downside factors in its own analysis. It had also failed to make adequate disclosure of material information about the fund … … The SFC’s investigation also found that RSL had failed to adopt acceptable account opening procedures for verifying the identities of clients who opened their accounts on a non-face-to-face basis through RSL’s mobile application between 26 November 2018 and 31 July 2020.” More info below:
“ Hong Kong SFC Fines Ruifeng Securities $665,000 for Failure in Fund Management & Accounting Opening Procedures and Suspends Responsible Officer Fang Zhi for 10 Months, Investment Analysis Revealed Downside Factors of a China Property Developer But Invested $94.5 Million Representing 90% of the Fund into Related Financial Instruments & Failed to Provide Adequate Disclosure Between 2019 to 2020, Failed to Properly Verify Clients for Non-Face-to-Face Mobile Account Opening Between 2018 to 2020 “
- 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 Ruifeng Securities $665,000 for Failure in Fund Management & Accounting Opening Procedures and Suspends Responsible Officer Fang Zhi for 10 Months
Hong Kong, Asia’s leading financial centre 4th Dec 2023 – The Securities and Futures Commission (SFC) has reprimanded and fined Ruifeng Securities Limited (RSL) HK$5.2 million over failures relating to its fund management activities and account opening procedures (Note 1). The disciplinary action follows an SFC investigation into RSL when it acted as an investment manager of a Cayman-incorporated fund between 1 July 2019 and 10 December 2020. The investigation found that as of May 2020, RSL invested about 90 per cent of the fund’s US$94.5 million net asset value into financial instruments linked to a Mainland property developer even after identifying various downside factors in its own analysis. It had also failed to make adequate disclosure of material information about the fund. The SFC has also suspended the licence of Mr Fang Zhi for 10 months from 1 December 2023 to 30 September 2024 for failing to discharge his duties as a responsible officer of RSL in charge of its fund management activities (Note 2).
Specifically, RSL failed to:
- have sufficient risk management measures to ensure the fund was not exposed to excessive risks, and ensure that its decisions to invest in certain fixed income products for the fund were reasonable and in the fund’s best interest in light of all relevant factors;
- make adequate disclosure of information about the fund’s investment holdings which were necessary for the fund investors to be able to make an informed judgment about their investment into the fund;
- identify, prevent, manage and minimise the conflict of interest arising from its underwriting activities and disclose the conflict to the fund’s investors; and
- ensure the accuracy of a representation made on behalf of the fund to a notes issuer in a subscription agreement (Note 3).
The SFC’s investigation also found that RSL had failed to adopt acceptable account opening procedures for verifying the identities of clients who opened their accounts on a non-face-to-face basis through RSL’s mobile application between 26 November 2018 and 31 July 2020 (Note 4). The SFC considers that RSL’s failures in relation to the management of the fund are attributable to Fang’s failure to discharge his duties as a responsible officer and a member of the senior management of RSL. In deciding the sanctions, the SFC took into account all relevant circumstances, including RSL’s remedial actions, RSL and Fang’s cooperation with the SFC in resolving the SFC’s concerns and their otherwise clean disciplinary record.
Notes:
A copy of the Statement of Disciplinary Action is available on the SFC website
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.