Swiss private bank Julius Baer is to pay HK$3m
($390,000) in fines to the Hong Kong Securities and Futures
Commission (HKSFC) for failing to identify wealthy clients as
professional investors between October 2006 and July 2008.
HKSFC said an investigation found Julius
Baer’s Hong Kong (JBHK) operation had failed:
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- to take adequate steps to identify clients as professional
investors - to conduct an annual confirmation as to whether its clients
continued to fulfil the professional investor requirements;
and - to maintain adequate written records of its investment advice
given to clients
In Hong Kong, a client is classed as a
professional investor if they have a portfolio worth $8m or more in
assets.
“The difference between professional investors and ordinary retail
customers is a profoundly important one. Firms that do not classify
customers properly, in strict compliance with the requirements,
impose undue risks on those customers,” said HKSFC executive
director of enforcement Mark Steward.
In a statement, Julius Baer said it was
pleased to have resolved issues with the HKSFC and said all
breaches were remediated by JBHK some time ago.
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By GlobalData
