SFC fines Enlighten Securities $5m over internal control failures

ESL provided financial accommodation to margin clients with long-standing margin shortfalls.

The Securities and Futures Commission (SFC) has reprimanded and fined Enlighten Securities Limited (ESL) $5m for internal control failures over securities margin financing.

SFC found that ESL provided financial accommodation to margin clients who had long-standing margin shortfalls and a poor history of settling margin calls.

Specifically, ESL failed to effectively manage margin calls or exercise forced liquidation on margin clients and document the explanation for deviation from its margin lending and margin call policy.

The company also did not properly manage its margin clients’ credit limits, and promptly collect margin due from clients.

The SFC has also suspended the licence of ESL’s manager-in-charge for seven months from 21 March to 20 October 2025. 

It considers ESL’s failures attributable to the manager's failure to discharge his duties as a responsible officer and a member of the senior management of ESL.