One of the primary concerns surrounding SG Securities is its handling of client funds. In 2019, the Monetary Authority of Singapore (MAS) discovered that the firm had violated rules related to the segregation of client money. Specifically, SG Securities had failed to promptly deposit clients' funds into segregated accounts, meaning client money was commingled with the firm's funds. This raised concerns about the safety of clients' investments, as their funds could be at risk if SG Securities encountered financial difficulties.

After discovering these violations, SG Securities was fined $200,000 by the MAS and ordered to improve its compliance processes. The firm has since implemented new measures to address the issue of client fund segregation, including the appointment of a dedicated compliance officer and the implementation of enhanced monitoring processes. Another issue raised concerning SG Securities is its handling of client orders. In 2020, the firm was fined $125,000 by the MAS for failing to ensure that its clients' orders were executed relatively and on time. 

Specifically, SG Securities needed to implement adequate controls to prevent front-running, a practice in which a broker uses information about pending client orders to make trades for its account before executing the client orders. In response to this issue, SG Securities has implemented new controls to prevent front-running and ensure client orders are executed fairly and transparently. The firm has also enhanced its monitoring and surveillance capabilities to detect potential violations of these controls. 

Finally, SG Securities has also faced criticism for handling certain investment products. In particular, the firm has been accused of promoting high-risk products to inexperienced investors without adequately disclosing the risks involved. This has led to losses for some clients, who must be made aware of the risks involved in these investments.

오재훈 강남포스트 학생기자  webmaster@ignnews.kr

<저작권자 © 강남포스트, 무단 전재 및 재배포 금지>