Cambodia's securities regulator has announced the formation of a task force to crack down on unlicensed operators in the securities sector, as well as a hotline for consumers to report any illicit activity.

A 21-member task force will monitor illegal activity in the trading of securities and investigate cases of unlicensed operators, including the source and amount of capital invested in these firms, according to a joint statement from the Securities Exchange Commission of Cambodia (SECC) and the Ministry of Interior issued on Friday.

“The purpose of this group is to protect the public interest and strengthen law enforcement in the securities sector in Cambodia,” the statement read.

Nguon Sokha, secretary of state at the Finance Ministry and former director-general at the National Bank of Cambodia, will head the newly formed group, with members drawn from the Interior Ministry and the SECC.

Apart from monitoring the sector, the group will also investigate and conduct site visits to securities operators who are suspected to be illegal or unlicensed.

The SECC last year flagged three Hong Kong-based investment firms that were soliciting deposits from customers on the promise of receiving high returns, as well as a pyramid scheme run by Phnom Penh-based ProfitPlus, a firm that was operating outside the scope of its licence and defrauded customers.