Hong Kong's SFC fines Deutsche Bank

  • Mar 15, 2018

Deutsche Bank fined HKD8.3 million (USD1.1 million) over regulatory breaches.

Hong Kong's Securities and Futures Commission (SFC) has fined Deutsche Bank and its wholly-owned subsidiary Deutsche Securities Asia, HKD8.3 million (USD1.1 million) over regulatory breaches.

According to a press release from the SFC, the breaches are related to short position reporting, segregation of client monies and engaging in regulated activities without a licence.

The SFC said that Deutsche Bank failed to report 792 short positions between June 2012 and January 2015.

Under SFC rules, banks must notify the regulator of these within a specific time frame.

The SFC also found that between January 2015 and March 2017, the bank published 49 research reports on futures contracts without the required licence.

And between January 2010 and December 2014, Deutsche Securities Asia failed to segregate client monies within the SFC rules’ prescribed time frame.

“The SFC considers that the cooperation by Deutsche Bank [and its subsidiary] has expedited the disciplinary proceedings; otherwise, similar failure would have resulted in a substantially higher level of fine,” the SFC said in the statement.

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