By Selena Li and Scott Murdoch HONG KONG (Reuters) -HSBC has been fined HK$4.2 million ($537,683) by Hong Kong regulators over disclosure failures, the regulators said on Tuesday. The bank failed to properly disclose investment banking relationships with Hong Kong-listed companies in more than 4,200 research reports published between 2013 and 2021, the regulators said. […]
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HSBC fined $4.2 million by Hong Kong regulators over disclosure failure
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By Selena Li and Scott Murdoch
HONG KONG (Reuters) -HSBC has been fined HK$4.2 million ($537,683) by Hong Kong regulators over disclosure failures, the regulators said on Tuesday.
The bank failed to properly disclose investment banking relationships with Hong Kong-listed companies in more than 4,200 research reports published between 2013 and 2021, the regulators said.
The fine is a result of a self-report by HSBC followed by joint investigation by the Securities and Futures Commission (SFC) and Hong Kong Monetary Authority, the regulators said in a statement.
These issues were caused by deficiencies in HSBC’s data recording and mapping across systems, according to the regulators.
However, there has been no evidence of client losses resulting from the disclosure issues, they said.
HSBC said in a statement to Reuters that the breach “is a historic matter” and the bank has remediated its systems and controls.
In 2019, the SFC fined Credit Suisse (Hong Kong) Limited and Credit Suisse AG a total of HK$2.8 million for failing to disclose their investment banking relationships in certain research reports on Hong Kong-listed securities published between 2006 and August 2016.
Earlier this year, Hang Seng Bank, which is 62% owned by HSBC, was fined HK$66.4 million for overcharging its clients while selling investment products.
($1 = 7.8113 Hong Kong dollars)
(Reporting by Selena Li and Scott Murdoch; Editing by Susan Fenton and Tomasz Janowski)