KVB Kunlun confirms completion of disengagement of PRC clients
No notices of penalty were identified as having been issued against KVB Kunlun’s companies by any regulatory agencies in the PRC.
Hong Kong-focused retail Forex broker KVB Kunlun Financial Group Ltd (HKG:6877) has earlier today provided a set of business updates.
The brokerage referred to its announcement from May 2019 in connection with the proposed identification and disengagement of the People’s Republic of China (the PRC) domestic clients in respect of the online forex margin trading services provided by the Group’s Australia and New Zealand subsidiaries.
In line with the advice from the company’s legal advisers on the PRC laws, and in light of the heightened regulatory expectations of the PRC regulators, KVB Kunlun took a conservative approach and deemed clients who were unable to provide overseas residential address proof as actual or potential PRC domestic clients and disengaged these clients. Today, the Board confirms that the Identification and Disengagement have been completed.
As a result of the disengagement, KVB Kunlun will focus on maintaining its current existing client base and expanding its client base.
In particular, KVB Kunlun plans to diversify its client base to include both overseas Chinese speaking and non-Chinese speaking client in Australia and New Zealand. The company also intends to explore opportunities to provide competitive solutions to institutional clients.
KVB Kunlun aims to bring in experienced staff with relevant experience and knowledge to join the Group to strengthen current marketing and business development personnel to assist in implementing the Group’s proposed business plan. KVB Kunlun says it is in the process of meeting potential candidates to actively recruit personnel with relevant experience in the leveraged FX business.
The Group’s Hong Kong licensed entity has recently recruited and hired two new responsible officers, whose appointment has already been approved by the Securities and Futures Commission in Hong Kong. In addition to the above, the Group is also recruiting suitable candidates to expand its talent pool in all of its licensed entities in Hong Kong, New Zealand and Australia.
The brokerage will carry out a variety of marketing activities with respect to existing and new clients, including preparation of marketing materials as part of the brand rebuilding, holding a series of seminars with local associations and to introduce its new brand, launching digital marketing campaign and sponsoring events to enable the company to gain more exposure in Australia and New Zealand.
The company will rebrand its corporate image to better utilize and capitalize on the business know-how and potential synergies with the CLSA group and its affiliates.
KVB Kunlun is also in the process of finalising designs of its new websites. The new websites will reflect the new name, new brand and new logo of the Group. The brokerage will upgrade its information technology systems, including the rolling out of a mobile forex trading application to make it more convenient for existing and future clients to trade forex products with the Group’s companies.
The Board noted that all financial services regulatory licenses held by the Group’s licensed entities in Hong Kong, Australia and New Zealand remain in full force and effect.