HSBC Fined for Hong Kong Research Disclosure Failures
Hong Kong regulators have fined HSBC over failures to disclose investment banking relationships linked to companies covered in research reports.
HSBC has been reprimanded and fined HK$4.2 million ($540,000) by the Securities and Futures Commission (SFC) over disclosure failures, according to a statement.
In an investigation conducted by the SFC and the Hong Kong Monetary Authority (HKMA), HSBC was found to have failed to disclose or make incorrect disclosures regarding its investment banking relationships with various Hong Kong-listed companies covered in over 4,200 research reports published between 2013 and 2021. The issues were caused by deficiencies in the bank's data recording and mapping across systems.
«The SFC considers that HSBC has failed to ensure compliance with the disclosure requirement and the accuracy of disclosures in its research reports by acting with due skill and care, as well as implementing effective systems and controls,» the regulator said, adding that the issue was first self-reported by HSBC.
