The company used client money to conduct proprietary transactions.
The Securities and Futures Commission (SFC) has slapped a $2m fine on foreign exchange trading firm HPI Forex Limited for mishandling client money, according to a media release.
HPI admitted that it had transferred up to $8m from a segregated client account from a bank in Hong Kong to the accounts of two of its overseas brokers between March 2013 to April 2014 which was then used to conduct proprietary transactions.
After discovering that the move might result in violations, HPI remitted all client money from the accounts of the overseas brokers to the client account in Hong Kong.
HPI breached the Code of Conduct by failing to maintain client money in its proper place, SFC said in a statement
“HPI’s use of the client money to conduct proprietary transactions also constitutes a breach of its fundamental duty as a licensed intermediary to ensure that client assets are promptly and properly accounted for and adequately safeguarded,” the regulator added.
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