IN what is believed to be a first, the Securities and Futures Commission (SFC) has clamped down on the assets of a leveraged foreign exchange trader, citing suspected malpractice.
The SFC said the move was in the interest of the public.
It appointed a partner from Price Waterhouse to examine the books of the company, Canwell Forex International, a registered leveraged foreign exchange trader.
The SFC's move means Canwell's access to bank accounts in Hong Kong and elsewhere is tightly restricted.
'The suspected malpractices uncovered during our inspection of Canwell go to the heart of the integrity of the business and has the potential to seriously prejudice the interests of the investing public,' said SFC acting chairman Michael Wu.
'We are, therefore, convinced that it is in the interest of the investing public, particularly its clients and counterparties, to take immediate action to safeguard Canwell's assets and to appoint an auditor to verify the books and records of the company.' The SFC said it had issued a notice under Section 51 of the Leveraged Foreign Exchange Ordinance against Canwell.