KVB Kunlun and Banclogix agree on data preservation amid review of ex-CEO performance

Maria Nikolova

The clash between the brokerage and the IT services provider has reached the Court, as the review of the activities of Liu Stefan continues.

FinanceFeeds’ readers may recall the announcement from July this year that Hong Kong-focused retail Forex broker KVB Kunlun Financial Group Ltd (HKG:6877) parted ways with its CEO Liu Stefan. The resignation of Mr Liu Stefan was rather abrupt and reflected his disagreement with the Board of the brokerage over disclosure of certain matters relating to the business involving Chinese clients.

Back then, the brokerage started a review of its ex-CEO activities. KVB has established a sub-committee of the Board to review Mr. Liu’s performance during his time as chief executive officer and executive director of the company.

Then KVB clashed with Banclogix, which signed an information technology services agreement with the brokerage in December 2018. As part of the review of Liu’s performance, KVB Kunlun has made several attempts to access, on an urgent basis, data relating to the brokerage, but Banclogix has not provided such access.

The dispute has reached the Court. In a document filed this morning with the HKEX, KVB said it has reached an agreement with Banclogix regarding the preservation of information.

In particular, Banclogix undertakes not to, directly or indirectly, whether through its directors, officers, employees, agents, and whether inside or outside Hong Kong, delete or dispose of any data owned by KVB Kunlun, or supplied by or originated from KVB Kunlun and/or their customers in connection with any services provided by Banclogix to KVB under the IT Services Agreement, and contained or hosted on computer servers, back-up tapes or any other media in Banclogix’s possession, custody or power whether inside or outside Hong Kong (“KVB’s Data”), save and except such deletion and/or modification in the ordinary course of business and/or for proper system maintenance.

Also, until further order of the Hong Kong High Court, Banclogix shall preserve any and all of the annual back-ups for the last seven years, rotational back-up version containing KVB’s Data as at 26 July 2019 (or, if not available, the next available day), and non-rotational back-ups (if any) containing KVB’s Data.

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