KVB Kunlun’s CEO resigns over disagreement with Board on certain disclosure matters

Maria Nikolova

The disagreement concerns the proposed publication of an announcement relating to the update on identification and disengagement of Chinese clients.

In line with an earlier announcement by Hong Kong-focused retail Forex broker KVB Kunlun Financial Group Ltd (HKG:6877), the brokerage has just said that Mr. Liu Stefan has tendered a notice of resignation. He is resigning from (i) his position as an executive director and the chief executive officer of the Company; and (ii) all of his other positions within the Group with immediate effect. The Board further announces that, Mr. Huang Songyuan has resigned with immediate effect from his position as (i) an executive director of the Company; and (ii) all of his other positions within the Group.

Mr. Liu and Mr. Huang stated that their resignations were due to their disagreement with other members of the Board in relation to certain disclosure matters relating to the regulatory impact to the company of the circular issued by the regulator in Hong Kong around June 17, 2019 and the letter dated 5 July 2019 issued by the regulator in New Zealand. In particular, the circular from the Securities and Futures Commission (SFC) states that corporations licensed with the Securities and Futures Commission in Hong Kong, and the communication from the Financial Markets Authority of New Zealand provides that financial services providers, offering leveraged foreign exchange trading or similar services to Mainland investors were requested to immediately review the legality of relevant activities in the People’s Republic of China (“PRC”), and to immediately discontinue any such activities with Mainland investors which have not been approved by the State Administration of Foreign Exchange of the PRC.

According to the email from Mr. Liu and Mr. Huang, the disagreement concerns the proposed publication of an announcement relating to these update on identification and disengagement of PRC domestic clients.

As the result of Mr. Liu’s departure, 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.

The departure of Mr. Liu and Mr. Huang will leave vacancies in certain roles and positions within the Group. The company is seeking suitable replacements for Mr. Liu and Mr. Huang as soon as possible to minimise any impact on the business, and the other executive directors of the company will assume the roles and duties of Mr. Liu and Mr. Huang in the Company for the time being.

Following the Mr. Liu Resignations, Mr. Liu ceased to be an authorised representative of KVB Kunlun. Mr. Xu Jianqiang, an existing director of the company, has been appointed as an authorised representative of the company with effect from July 29, 2019.

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