Turmoil has reigned supreme at the top of the ladder at KVB Kunlun over the last few weeks. Less than two weeks ago the brokerage’s CEO resigned, citing disagreements with the firm’s board on certain issues. Less than a fortnight after the CEO resigned, the company’s CFO has tendered his resignation.
KVB Kunlun Financial Group Ltd, a forex broker whose business is focused on Hong Kong, is currently going through some changes in leadership. Two of the firm’s top brass have resigned within two weeks of each other, and this is never a good sign for any company.
The brokerage has announced that its CFO, Mr. Wong Yiu Kit, has resigned from his position, with the resignation effective from the 16th of August, 2019. Mr. Wong also operated as the company secretary and executive director, and he is also stepping down from these positions.
According to the announcement made by KVB Kunlun, Mr. Wong has resigned because he wants to focus on some personal matters. The firm stressed that the resignation of the CFO is not a result of any form of disagreement between the executive and the firm. The firm reassures shareholders and participants on the stock exchange that there is no internal battle, and this resignation should not be taken as a sign that there are continual disagreements among the firm’s leadership.
Mr. Wong’s resignation comes within a fortnight of the firm’s CEO tendering his resignation. Mr. Liu Stefan stepped down from his position at the helm of the brokerage after there were disagreements between him and some board members. The disputes which led to Mr. Liu resigning were about matters of disclosure related to the potential impact of regulatory measures put in place by New Zealand’s financial regulator.
Hong Kong’s Securities and Futures Commission (SFC) received a request from the Financial Markets Authority (FMA) Of New Zealand which required firms registered with Hong Kong’s watchdog to review their policies as far as trading with citizens of mainland China goes.
Brokerage firms were asked to stop doing business with mainland investors who have not been cleared by the State Administration of Foreign Exchange in China. The disagreement between the former CEO and some members of the board stemmed from the route each party wanted the firm to take as far as announcing updates of the firm’s position on trading with mainland investors.
While KVB Kunlun insists that there is no ongoing disagreement within the brokerage’s leadership, having two executives resign within two weeks of each other is never a good sign. These developments will concern stakeholders and stock investors, and they will be keeping a close eye on how the firm proceeds from this point.