SFC reprimands and fines Potomac Capital Limited $800,000 for breaching Financial Resources Rules:
SFC Press Release, 8 June 2020
The SFC reprimanded and fined Potomac Capital Limited a Type 1 & 9 licensed corporation $800,000 for failing to comply with the FRR rules. The company was found to have overstated its liquid capital in its financial returns from November 2016 to May 2017 by incorrectly including certain fees receivables from two clients accumulated since around April 2013 as liquid assets when the aged fee receivables should not qualify as liquid assets under the FRR. The SFC is of the view that Potomac’s conduct was in breach of the Code of Conduct.
