CLSA Premium Suspends Operations In Australia

The corporation ceased operations in New Zealand earlier this year.

It will redirect resources from Australia to other countries.

CLSA Premium Ltd. (HKG:6877), a Hong Kong-based forex broker, has suspended operations in Australia, claiming continuous losses in the firm.

“Given the ongoing losses suffered by the business in Australia and the uncertain future of such business,” the company stated in an official announcement on Wednesday. “The board of directors of the Company considers that the resources and effort deployed in Australia could potentially be better utilized in the Company's development in other areas.”

Furthermore, the broker warned owners and prospective investors to “take care while dealing with the Company's shares and/or securities.”

A Difficult Broker

CLSA, formerly known as KVB Kunlun, has been in problem for some years. It took a similar move to suspend operations in New Zealand in January.

Following various additional license requirements, the company's New Zealand affiliate was fined NZ$770,000 by the local financial market authority for major anti-money laundering violations. Initially, the Kiwi regulator detected irregularities in CLSA's operations in 2014, and subsequent failures in 2018 even after the broker had made adjustments.

Meanwhile, the corporation has been resisting a shareholder's desire to wind down operations. Last March, the broker avoided a wind-down request for the third time when the majority of its shareholders voted against it.

KVB Holdings issued all of the wind-down requests because it considers the broker has an inadequate level of operations and is in a bad financial state. Indeed, CLSA lost HK$3.8 million in the first six months of 2021.

About CLSA

CLSA Ltd. (previously Credit Lyonnais Securities Asia) is capital markets and investment firm for corporate and institutional customers that specializes in alternative investment, asset management, corporate finance, capital markets, securities, and wealth management.

CLSA was founded in 1986 by two former journalists and has offices or representation in 20 locations around Asia-Pacific, as well as Amsterdam, London, and New York. CLSA was purchased for $1.3 billion by CITIC Securities, China's biggest investment bank, in 2013.

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