Private Bank Case Study: Breaches, Implications & Lessons Learnt
HSBC Private Bank (Suisse) SA v Securities and Futures Commission, SFAT 3/2015
The Securities and Futures Appeals Tribunal (SFAT) handed down the judgement on 21 November 2017 with a pecuniary fine of HK$400 million and one year suspension of Type 4 license and one year partial suspension of Type 1 license.
The case raised interesting issues of “hindsight” of the Lehman problems, commonality of industry practice, improving process of the bank, “contract out” of regulatory obligations and most importantly the SFAT’s interpretation of s196(2) confirming that SFC can multiply the fine for each systemic failure by the number of legitimate complaints.
The session will give the background of SFC’s allegation of breaches and SFAT’s discussions on the above issues. Above all, a lesson-learnt for all intermediaries in ensuring a structured process is in place to safeguard suitability compliance.
1. Summary of the SFAT hearing
2. SFAT’s reason for determination and interesting observations
3. Lessons learnt
Who should attend
This course is suitable for private bankers, wealth and asset managers, investment product managers, compliance officers, Executive Officer/S72B Managers for authorised institutions, Responsible Officer/Manager-in-charge for licensed corporations and board members of financial institutions.