Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 14

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 4A
Chunk 14
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 services in support of our trading
platform. We have implemented emergency backup plan in case of system failure. Our backup system is able to support our customers’
trading activities until the core system is fixed. Our stable and low-latency trading platforms are a core part of our strength, and we
are committed to continue our efforts in maintaining the reliability and efficiency of our trading platforms.

Our ability to meet the regulatory requirements
to provide brokerage, margin financing and asset management services in Hong Kong

Brokerage services, margin financing and asset
management are highly regulated in Hong Kong. While our operations are mainly located in Hong Kong, we are inevitably subject to the relevant
laws and regulations, in particular, the Securities and Futures Ordinance (Cap. 571) (“ SFO”), under the supervision of the
Securities and Futures Commission of Hong Kong (“ HKSFC”). Pursuant to the SFO, we have to comply with all application provisions
concerning statutory obligations such as maintenance of minimum capital adequacy, specific regulatory reporting, and availability of responsible
officers.

We monitor our capital level on daily basis so
as to fulfill the statutory requirements. Before making a significant movement of our cash, we will estimate the effect of sub activity
on our capital level and make sure to remain compliant with the regulations. Accordingly, we also have statutory obligations to report
to the authority on monthly basis about our capital level maintained at the end of the month and if any significant fluctuations occurred
that we shall notify the authority.

Besides, as required by the SFO, there must be
at least two responsible officers per regulated activity, who will supervise our regulated business and assume greater responsibilities
over the SFO compliance. To maintain compliance, we have always maintained two to three experienced responsible officers for each regulated
activity. To retain our responsible officers and stay compliant with the availability of responsible officers, we offer attractive remuneration
packages and align their interests with the Company’s interests.

Loan Business

Winrich is a licensed money lending company governed
by the Money Lenders Ordinance in Hong Kong to carrying on business as a money lender. Since September 5, 2023, Winrich has engaged in
the money lending business. According to the Money Lenders Ordinance, customers shall enter into agreement with Winrich in person and
provide their personal information for the “know your client” purposes, or KYC. Winrich disbursed loans to customers for a
fixed period and charged interest from the customers. The principal