Brokers trading without licences
TEXT messages, in which a broker at an unlicensed derivatives trading firm purportedly informs one of Prime Minister Hun Sen’s daughters that her trading account had been “topped up” with over half a million US dollars, were leaked yesterday. The texts raised questions about the government’s resolve in clamping down on unregulated derivatives brokerages, which cater largely to the country’s wealthy elite.
T h e S e c u r i t i e s a n d Exchange Commission of Cambodia (SECC) has made slow progress in reining in unlicensed operations since issuing its first derivatives trading licence nearly a year ago. To date, only six licences have been issued, while at least as many unlicensed firms continue to openly advertise forex and metals trading services.
Some have deceptively masked their legal status, while others have partnered with licensed local derivatives firms – a move that provides temporary shelter from regulatory scrutiny and allows them to continue to chalk up high-profile clients, despite the illegality of their operations.
Among these is Askap Gold Investment Co Ltd, a derivatives brokerage mentioned in a series of alleged leaked text messages distributed to the local media last week by former opposition leader Sam Rainsy.
In correspondence dated November 11 and 23, Askap Gold informed Hun Maly, the youngest daughter of Prime Minister Hun Sen, via SMS, CONTINUED
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