Hong Kong's securities regulator has publicly reprimanded and fined HSBC HKD2.5 for regulatory breaches and internal control failings.

The Securities and Futures Commission (SFC) said HSBC failed to put in place adequate internal controls to monitor its positions in Hong Kong Futures Exchange's futures and options contracts to ensure compliance with the prescribed limit.

The regulator added that HSBC held open positions in Hang Seng China Enterprises Index futures and options contracts, which violated the prescribed limit on 18 occasions from 26 May to 1 August 2014.

The bank also failed to comply with SFC’s code of conduct by lacking sufficient controls to monitor its positions in Hong Kong Futures Exchange’s (HKFE) futures and options contracts.

“In deciding the penalty, the SFC has taken into account that HSBC has since taken steps to improve its internal controls on monitoring of position limit and co-operated with the SFC in resolving the SFC’s concerns,” the regulator added.

HSBC apologised for the breaches and said that it has cooperated with the securities watchdog.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“HSBC apologises for the breaches identified and reported to the Securities and Futures Commission in 2014. The bank has cooperated fully with the SFC throughout this investigation and has taken actions to improve our internal controls regarding our compliance with the prescribed position limits in Hong Kong. No clients were impacted by these breaches,” the bank said.