Company: TOP
Filing Date: 2025-04-04
Form Type: POS AM
Source: 0001213900-25-029013
Chunk: 30

Company: TOP Financial Group Ltd
Filing Date: 2025-04-04
Form: POS AM
Chunk 30
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 or approvals, we may face sanctions by the CSRC, the CAC or other PRC
regulatory agencies. These regulatory agencies may impose fines and penalties on us, limit the operations, limit our ability to pay dividends
outside of China, limit our ability to list on stock exchanges outside of China or offer our securities to foreign investors or take
other actions that could have a material adverse effect on our business, financial condition, results of operations and prospects, may
hinder our ability to offer or continue to offer securities to investors and may cause the value of our securities to significantly decline
or be worthless.

Additionally, due to long arm provisions under
the current PRC laws and regulations, there remains regulatory uncertainty with respect to the implementation and interpretation of laws
in China. We are also subject to the risks of uncertainty about any future actions the Chinese government or authorities in Hong Kong
may take in this regard.

The Chinese government may exercise significant
oversight and discretion over the conduct of our business and may intervene in or influence our operations at any time. Such governmental
actions could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and may cause
the value of our securities to significantly decline or be worthless.

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Implication of the Holding Foreign Companies Accountable Act (the “HFCA Act”)

The HFCA Act was enacted on December 18, 2020.
The HFCA Act states if the SEC determines that a company has filed audit reports issued by a registered public accounting firm that has
not been subject to inspection by the PCAOB for three consecutive years beginning in 2021, the SEC shall prohibit the company’s
shares from being traded on a national securities exchange or in the over the counter trading market in the United States. On March 24,
2021, the SEC adopted interim final rules relating to the implementation of certain disclosure and documentation requirements of the
HFCA Act. A company will be required to comply with these rules if the SEC identifies it as having a “non-inspection” year
under a process to be subsequently established by the SEC. The SEC is assessing how to implement other requirements of the HFCA Act,
including the listing and trading prohibition requirements described above. On June 22, 2021, the U.S. Senate passed the Accelerating
Holding Foreign Companies Accountable Act, and on December 29, 2022, legislation entitled “Consolidated Appropriations Act, 2023”