CLSA Premium Ltd suspended its operations in Australia, noting continuing losses in the company.
The company is shutting down its Australian business due to ongoing losses and an uncertain future. They believe that they could better utilize resources in other areas.
The broker warns shareholders and potential investors to be cautious when dealing with the company’s shares and securities. The company is financially struggling and may not be able to make a comeback.
A Troubled Broker
CLSA has been in trouble for years. Last January, they decided to suspend their operations in New Zealand.
The local financial regulator fined the New Zealand subsidiary NZ$770,000 for serious anti-money laundering breaches. The regulator had previously pointed out problems with CLSA’s practices in 2014, and additional breaches were discovered in 2018, even after the firm made progress.
Meanwhile, the firm has been battling with one of its shareholders to prevent a wind-down. The broker avoided a wind-down application for the third time last Morch as most of its shareholders rejected the proposal.
KVB Holdings has requested that CLSA wind down its operations because they believe the broker is in a poor financial situation. They have cited the first six months of 2021, during which CLSA lost HK$3.8 million.
