The Securities and Futures Commission (SFC), Hong Kong’s main financial services watchdog, today updated its Alert List with the addition of another brokerage after it was found to be offering its services to the public without being authorised to do so. This follows the addition of four entities earlier this week.
On this occasion, Carlson-Schmidt Securities has come under scrutiny by the watchdog in a spate of recent warnings after promoting its trading services without a licence.
Legal Risk Factor Beneath Ripple’s Lawsuit from SECGo to article >>
The firm, which operates online via www.carlson-schmidt-securities.com, provides specialised investment management, wealth advice and corporate fiduciary services to individuals, families, financial advisers and institutions. Its address is listed as C-BONS International Centre, 108 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong but it is not actually located there as the SFC has found.
Hong Kong’s financial watchdog plays a key role in informing investors about potential scams by drawing attention to illicit operations and unregulated entities that market participants should refrain from doing business with.
In conjunction with today’s additions, SFC has also taken the opportunity to warn in its statement that unlicensed entities often use names similar to legitimate companies to confuse investors, and while a firm’s website may reveal what appears to be a legitimate financial services outfit, ambiguities relating to the firm’s address and bank account details often raise concerns.
As these factors were a feature of today’s warning on Carlson-Schmidt Securities, the SFC has taken action in order to protect any potential investors falling into unscrupulous hands.