The Court of First Instance has ordered that Salisbury Securities Limited (Salisbury) be wound up on the application of the Securities and Futures Commission (SFC) (Note 1).
The SFC’s application was based on a number of concerns about the whereabouts of nearly $9 million worth of securities and sales proceeds belonging to Salisbury’s clients.
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The SFC also asserted that it had been misled by Salisbury about its liquid capital calculations and its holdings in clients’ securities accounts (Note 2).
The provisional liquidators reported to the court that:
- Salisbury’s clients’ trust assets were not properly recorded;
- there is a deficiency of cash and securities maintained in Salisbury’s clients’ accounts to meet all current claims from clients; and
- It appears that Salisbury was insolvent and unable to pay all its debts as and when due.
The provisional liquidators also reported that they are making inquiries into client securities held in the Philippines by an entity purportedly associated with Salisbury to determine whether any client assets need to be returned to Hong Kong.
Salisbury had about 100 active clients at the time the SFC issued a restriction notice against it on 18 March 2013.
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By GlobalData
