IF you are a client of investment adviser Pan Pacific Securities Management, all of your investment assets with this company have been frozen.
The Securities and Futures Commission (SFC) has ordered the freeze because it is concerned about the financial affairs of the group after clients attempted to sue for $10.6 million worth of dishonoured cheques.
It is too early to say whether or not anything criminal has occurred at Pan Pacific, the SFC says.
However, it would appear from the information the SFC has that the company will be unlikely to cover current client liabilities without a significant injection of cash. Clients might never get all of their money back.
The last time the SFC issued a restriction notice was in March when the watchdog effectively shut down Kingly Commodities when it was identified that $17.6 million of client money had either been lost in trading or disappeared.
In that case, many of the clients could have saved themselves from losing money by checking whether the individuals they were dealing with were authorised to deal in Hongkong, as apparently 80 per cent of the company's dealers were unregistered.
