Longbridge Securities Issues Formal Statement on Regulatory Matter
Longbridge Securities Limited has provided a detailed clarification regarding a recent regulatory investigation into its entities and the potential administrative penalties. The statement commenced by outlining the firm's regulatory framework and jurisdictional oversight.
Core Safeguards: Segregation of Client Assets and Authoritative Custody
The declaration placed significant emphasis on the mechanisms protecting client assets, a primary concern for investors. Longbridge Securities clarified that all client funds are entirely segregated from the company's operational capital. These funds are held in segregated third-party bank custodian accounts, in strict adherence to regulatory mandates.
For the custody of securities, the firm employs industry-leading standards:
- U.S. Securities: Held in custody by The Depository Trust & Clearing Corporation, one of the world's largest securities depositories.
- Hong Kong Securities: Custodied by Hong Kong Securities Clearing Company Limited, ensuring legal independence and safety of assets.
Furthermore, eligible clients are protected under the Hong Kong Investor Compensation Fund, providing an additional layer of statutory safeguard.
The Path Forward: Commitment to Full Rectification and Compliant Operations
In response to the regulatory requirements, Longbridge Securities demonstrated a cooperative stance. The firm unequivocally committed to thoroughly implementing all rectification measures stipulated by the regulators. All subsequent arrangements will be advanced prudently and orderly within the boundaries of law and compliance, ensuring full alignment with regulatory standards.
This response aims to communicate to clients, partners, and the market the company's dedication to compliant operations and the protection of client rights and interests.