According to the Hong Kong Securities and Futures Commission (SFC), between January and September 2013 the Asia-based brokerage failed to properly disclose its trading profits to clients.
An SFC investigation also found that during this period Okasan did not conduct adequate due diligence on products or ensure products were suitable for clients before recommending them.
It also failed to maintain documentary records of the investment advice or recommendations given to its clients, or provide clients with a copy of the written advice.
Independent review
Following the disciplinary action, Okasan agreed to conduct an independent review of its systems and controls for its distribution of unlisted investment products.
The SFC-licensed company also agreed to enhance its complaint handling procedures.
