China News Service, December 30th. The website of the China Securities Regulatory Commission published an article on the 30th stating that it will promote the rectification of illegal cross-border business development of Futu Holdings and Tiger Securities.
The China Securities Regulatory Commission stated that in recent years, Futu Holdings Co., Ltd. (referred to as "Futu Holdings") and UP Fintech Holding Limited (referred to as "Tiger Securities") have not been approved by the China Securities Regulatory Commission to carry out cross-border securities business for domestic investors. Securities Law and other relevant laws and regulations, its behavior has constituted illegal securities business.
On October 15, 2021, the China Securities Regulatory Commission expressed its regulatory attitude through the media, that is, the cross-border securities business of such overseas securities operating institutions does not comply with the "Securities Law", "Regulations on the Supervision and Administration of Securities Companies" and other laws and regulations, and will deal with it in accordance with the law. Such activities are regulated.
On November 11, 2021, the China Securities Regulatory Commission conducted regulatory interviews with executives of Futu Holdings and Tiger Securities, clarified their regulatory attitudes, and required them to regulate cross-border securities business for domestic investors in accordance with the law.
According to the China Securities Regulatory Commission, in accordance with the idea of "effectively curbing the increase and orderly dissolving the stock", it plans to require Futu Holdings and Tiger Securities to rectify the above-mentioned violations of laws and regulations.
One is to ban incremental illegal business activities in accordance with the law.
It is prohibited to solicit domestic investors, develop new domestic customers, and open new accounts.
The second is to properly handle stock business.
In order to maintain market stability, existing domestic investors are allowed to continue to conduct transactions through the original overseas institutions, but foreign institutions are prohibited from accepting incremental funds that violate my country's foreign exchange management regulations to be transferred to such investor accounts.
The China Securities Regulatory Commission will instruct relevant dispatched agencies to conduct on-site inspections of Futu Holdings and Tiger Securities, supervise the rectification, and take further regulatory measures depending on the rectification situation.
(China New Finance and Economics)
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