A former Police Sergeant, Lam Kong-lung, has pleaded guilty to charges of fraud and deception after admitting to concealing The Securities and Futures Commission (SFC) has reprimanded and fined Hang Seng Bank Limited (HSB) $66.4 million for serious regulatory failures in the sale of collective investment schemes (CIS) and derivative products over a nine-year period. The SFC’s investigation, prompted by the Hong Kong Monetary Authority (HKMA), revealed that HSB engaged in excessive and misleading sales practices, leading clients to incur significant transaction costs and overcharge them without proper disclosure of monetary benefits. HSB’s internal controls were found inadequate, failing to supervise transactions appropriately. Despite these failures, HSB has compensated affected clients and improved its internal controls, demonstrating cooperation with regulatory authorities. The SFC emphasized its commitment to maintaining market integrity and deterring similar misconduct in the industry.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=25PR14