In its notice dated 15 June 2021, Federal Financial Supervisory Authority (BaFin) ordered Hillhouse Group, based in the Netherlands, to immediately cease the unauthorised conduct of its deposit and underwriting business and the unauthorised provision of its proprietary trading services.
Amongst other things, Hillhouse Group offers potential clients selected shares for purchase. The company operates as a “consortium bank” and also sells shares from its own portfolio. In addition, it grants buyers of shares a buyback guarantee.
Hillhouse Group is therefore conducting deposit business under section 1 (1) sentence 2 no. 1 second alternative of the Kreditwesengesetz (KWG) and underwriting business under section 1 (1) sentence 2 no. 10 of the KWG and is providing proprietary trading services under section 1 (1a) sentence 2 no. 4 (c) of the KWG, in all cases on a commercial basis. Hillhouse Group does not hold authorisation from BaFin as required under section 32 (1) of the KWG and is thus conducting unauthorised business.
The company Hillhouse Management Ltd., Hong Kong, stresses that it has no connections whatsoever to Hillhouse Group and, in particular, that it is not involved in the business activities of Hillhouse Group. This is therefore a case of identity theft committed by Hillhouse Group against Hillhouse Management Ltd.