SFC Fines Private Bank HK$400 million – Issues & Implications
HSBC Private Bank (Suisse) SA fined HK$400 million for systemic failures in selling structured products.
The judgement handed down by the Securities and Futures Appeals Tribunal (SFAT) on 21 November 2017 resulted in an HK$400 million fine and a 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.
Our speaker, Prof Anna Wong, will discuss some of SFAT's reasoning on the identified issues and implications to intermediaries.
He is also an Independent Non-Executive Director of China Southern Assets Management Co. Ltd., the second largest fund house in China. In addition, he provides consultancy services and training to regulatory authorities and institutions, including the SFC, the China Securities Regulatory Commission, financial institutions, and various professional bodies and universities in Hong Kong.
Dr. Chow holds a Doctor of Business Administration by the University of Hull of the UK. He is a senior fellow of the Hong Kong Securities and Investment Institute