The Securities and Futures Commission (SFC) has issued a restriction notice to Futu Securities International (Hong Kong) Limited, restricting dealings in up to HK$125.247 million of client assets.

The regulator said an entity suspected of involvement in a fraudulent scheme to create a false or artificial appearance of demand for shares in an IPO holds the accounts.

SFC clarified that Futu itself is not the subject of the ongoing investigation and that the restriction notice does not affect the brokerage or its other clients.

Under the restriction notice, Futu cannot deal with, process, or assist in the disposal of the specified assets without the SFC’s prior written consent.

The brokerage must also notify the regulator immediately if it receives any instructions relating to the restricted assets.

SFC said issuing the restriction notice is in the interest of the investing public and the public interest while its investigation continues.

Featured image credit: Edited by Fintech News Hong Kong, based on image by andranik.h90 via Magnific