Hong Kong’s SFC (SFC) Commission (SFC) has reprimanded and imposed a $ 4.2 million fine for a breach of the notification requirement when publication of research reports on the titles registered by Hong Kong for an eight -year period.
Following a self -report by HSBC, HKMA, in collaboration with SFC, conducted a survey. Both regulators found that HSBC failed to disclose and/or make incorrect notifications on investment banking relationships with various companies covered by research reports published between 2013 and 2021.
These issues, caused by HSBC data recording and mapping, are estimated to have influenced the notifications in over 4,200 research reports on the titles recorded in Hong Kong.
The SFC believes that the HSBC has failed to ensure compliance with the notification requirement and the accuracy of notifications in its research reports, acting with proper ability and care, as well as the implementation of effective systems and controls.
During the decision of disciplinary ratification, the SFC took into account various factors, including the lack of evidence of customer loss arising from the notification issues and the HSBC’s cooperation with HKMA and SFC in resolving the concerns specified in the research.