HK SFC Issues Warning Over Unauthorized Investment Product Advertised by Alpha Advice on Facebook

The Securities and Futures Commission of Hong Kong (HK SFC) has issued a public warning about Facebook advertisements paid by Alpha Advice, promoting a suspicious investment product "Litigation Asset-Backed Notes" or "90-Day Notes."

These Facebook ads, which seem to be targeting Hong Kong investors, contain references to features common to debentures. However, the SFC did not authorize these advertisements under the Securities and Futures Ordinance (SFO). This has led the SFC to suspect that the advertisements may have breached the SFO and/or the Companies (Winding Up and Miscellaneous Provisions) Ordinance (CWUMPO).

On December 19, 2024, "Litigation Asset-Backed Notes" or "90-Day Notes" was added to the SFC’s Suspicious Investment Products Alert List. This list includes investment products that have come to the SFC's attention through inquiries or complaints, displaying suspicious features, or being sold by unlicensed entities to Hong Kong investors.

HK SFC adds Litigation Asset-Backed Notes or 90-Day Notes to Suspicious Investment Products List

The SFC reminds the public that non-SFC-authorized investment products and their disclosure documents have not been reviewed by the SFC. Therefore, investors should exercise extreme caution as they may suffer significant or even total losses in such investments.

The SFC urges the public to avoid investing in any securities, including debentures, without proper documentation authorized by the SFC. The regulator also advises the public to remain vigilant and skeptical of “too-good-to-be-true” investment opportunities when making financial decisions.