Tiger Brokers proposes major staff cuts after 100-million-dollar fine
Online broker Tiger Brokers, fined 100 million dollars by New Zealand's Financial Markets Authority (FMA), has proposed a structural staff-cut programme affecting 215 of 380 employees in its Auckland operation. The decision is tied to compliance failures linked to the improper segregation of client assets.
Tiger Brokers New Zealand chief executive Calvin Yang told an internal staff meeting on Tuesday that following the FMA fine, the company will close 215 positions in compliance, operations and customer service across its Auckland site. Yang said « we take the FMA findings seriously and need to reposition the company on firmer foundations. »
Following a six-month audit, the FMA documented transaction flows that contravened the requirement to hold client funds in segregated corporate bank accounts on NZX trades. In addition to the 100-million New Zealand dollar fine, the regulator required Tiger Brokers to refrain from accepting new retail clients for 24 months.
The consultation will run for 30 days and the trade union First Union is preparing a counter-proposal to roll back 45 percent of the cuts. Parent company UP Fintech's Hong Kong-listed shares fell 8.2 percent at Tuesday's close. The New Zealand Exchange information notice will be released tomorrow.
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