(Alliance News) - Octagonal PLC on Thursday said complaints filed by the US Securities & Exchange Commission against subsidiary Global Investment Strategy UK Ltd omits several facts and is misleading.
The financial services firm said the regulator alleged Global Investment Strategy violated section 15 of the Securities Exchange Act of 1934 by acting as a broker-dealer in the US without registration with the SEC.
However Octagonal said the complaint by the SEC fails to note that GIS neither accepts nor executes orders for people in the US.
"GIS' services to US persons are limited to providing secured financing to professional investors and traders. GIS' financing services are all provided after the borrower has already effected the transaction through another broker-dealer. The complaint misleadingly describes these other broker-dealers as introducing broker-dealers, but they are not GIS' correspondents and do not introduce accounts to GIS," it explained.
The company said it continues to consult with its legal advisers and intends to defend itself against the allegations made.
Shares in Octagonal were suspended on Thursday, last quoted at 0.84 pence each.
By Ife Taiwo; ifetaiwo@alliancenews.com
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