UBS Fined for Investor Misclassification in Hong Kong
Hong Kong’s securities regulator has penalized UBS for incorrectly classifying its clients under the professional investor regime.
Hong Kong’s Securities and Futures Commission (SFC) has fined UBS HK$8 million ($1 million) for the misclassification of clients as professional investors (PI), according to a statement. Based on local regulations, PI is defined as clients with minimum assets valued at HK$8 million.
The regulator said the bank had failed to ensure accurate classification for over 12 years resulting in clients accessing securities pooled lending and investment products intended only for those with PI status. A review conducted by UBS between July 2018 and July 2022 found that 560 joint accounts booked or managed in Hong Kong were misclassified as PI accounts.
