HSBC fined $4.2m for disclosure infractions

The Hongkong and Shanghai Banking Corporation has been reprimanded for breaching a disclosure requirement in publishing research reports on Hong Kong-listed securities over an eight-year period.

The lender was fined HK$4.2 million by the Securities and Futures Commission.

Following a self-report by HSBC, an investigation was conducted by the city's securities regulator in collaboration with the Hong Kong Monetary Authority. Both regulators found that between 2013 and 2021, the bank’s research reports did not disclose, or incorrectly disclosed investment banking relationships with multiple companies.

These issues, which were caused by deficiencies in HSBC's data recording and mapping across systems, are estimated to have affected disclosures in over 4,200 research reports on Hong Kong-listed securities.

The SFC concluded that HSBC has failed to ensure compliance with the disclosure requirement and the accuracy of disclosures in its research reports by acting with due skill and care, as well as implementing effective systems and controls.

STAFF REPORTER