Strategy & Practice Management

HSBC Private Bank fined HKD 400 million

Securities and Futures Commission (SFC) issues largest fine ever.

HSBC Private Bank (Suisse) lost its appeal against a 2015 ruling for misconduct relating to the sale of structured products linked to Lehman Brothers – however, it’s fine was lowered from HK$ 605 million to HK$400 million.

The SFC also suspended HSBC one securities licence of the bank and partially suspended another, each for a period of one year.

However, HSBC said that the revocation of the licences would not affect its private banking business because its private banking operations in Hong Kong were no longer carried out by the legal entity whose licences had been revoked.