The action, taken by the Securities and Futures Commission, was taken to protect assets of GSL and its clients, it said in a statement at the start of this month. The SFC estimates the firm has around 60 active clients.     

“The SFC action follows a complaint to the SFC against GSL in relation to failing to return client securities to the complainant. An initial investigation indicates that GSL would not have sufficient resources to return these securities to the complainant,” the statement said. “This calls into serious doubt the integrity of GSL and its fitness and properness to remain licensed. The SFC therefore considers that the issue of a Restriction Notice against GSL is desirable in the interest of the investing public or in the public interest,” it said.

The regulator said it will continue to probe the matter and make further announcements when or if appropriate.