KVB Kunlun Financial Group Limited prefers caution when it comes to customers residing in the People’s Republic of China. The company recently announced that it has completed the offloading of such clients from its Australian and New Zealand subsidiaries.
In particular, in a statement filed to the Hong Kong Stock Exchange (HKEX), management confirmed that all Chinese or potentially Chinese customers have been identified. The company has ceased offering its services to such clients.
“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, the Company 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,” the statement said.
According to the statement, about 95% of the Group’s customers have been identified as actual or potential PRC domestic clients and been disengaged. In the future, the broker plans to focus on maintaining the existing customer base.
KVB Kunlun explores institutional potential
In addition, KVB Kunlun intends to focus on expanding its customer base. In particular, the broker seeks to attract Chinese speaking clients living abroad, as well as non-Chinese speaking clients from Australia and New Zealand. The broker will also consider entering the institutional segment.
“The Group will bring in experienced staff with relevant experience and knowledge to join the Group to strengthen current marketing and business development personnel of the Group to assist in implementing the Group’s proposed business plan. The Group is in the process of meeting potential candidates to actively recruit personnel with relevant experience in the leveraged FX business,”
In April, the Australian Securities and Investments Commission (ASIC) issued an urgent letter addressed to Forex brokers requesting to suspend the onboarding of customers from countries where the firms do not have a license.
As Finance Magnates reported earlier, although the focus of the regulator’s message could have been pointing at the European Union, the letter specifically mentioned China, a country that is integral to Australia’s economy.