Regulatory Alerts2016-02-15
Added · Updated
SFC Circular on Protecting Client Assets Against Internal Misconduct Annex 2: List of Possible Red Flags, Pitfalls and Vulnerabilities
The Securities and Futures Commission issued this annex to identify specific red flags and vulnerabilities that may indicate internal misconduct regarding client assets. The document outlines critical risks across staff conduct, trade document controls, client asset management, reconciliation processes, and account administration. It highlights indicators such as inadequate segregation of duties, lack of independent reconciliations, and irregularities in client fund handling to help firms strengthen their internal controls.
Topics
safeguarding
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