The Securities and Futures Commission (SFC) of Hong Kong has issued a restriction notice to Futu Securities International (Hong Kong) Limited (Futu), prohibiting it from dealing with or processing assets of up to $125,247,000 in client accounts held by an entity suspected to be involved in a fraudulent scheme to create a false or artificial appearance of demand for shares in an initial public offering (IPO).

Futu is not the subject of the SFC’s investigation, and the restriction notice does not affect Futu or its other clients.

The restriction notice prohibits Futu, without the SFC’s prior written consent, from disposing of or dealing with, assisting, counselling or procuring another person to dispose of or deal with, any assets in any way in the client accounts up to the amount stated in the notice. Futu is also required to notify the SFC immediately if it receives any instructions concerning the prohibited assets.

The SFC’s investigation is continuing.