HSBC Private Bank appeals against record HK$605 million fine by SFC
Record-high penalty was for alleged misselling of Lehman Brothers products
HSBC Private Bank (Suisse SA) has appealed against a record HK$605 million fine and the revocation of its advisory licence by the Securities and Futures Commission (SFC) over alleged misconduct related to the sale of Lehman Brothers-related structured products and some other forward accumulators between 2003 and 2008.
The hearing started on Wednesday and will last until at least May 12. It is being heard by Mr Justice Michael Hartmann, chairman of the Securities and Futures Appeals Tribunal. It follows a disciplinary decision by the SFC regarding the private banking arm of HSBC, the biggest lender in Hong Kong and Europe.
The HK$605 million fine is the largest ever imposed by the SFC on any broker or investment bank.
The SFC issued a statement in October saying HSBC Private Bank had applied to appeal against its decision.
In the statement, the SFC said the disciplinary action “concerns the bank’s internal controls and sales practices in connection with its sale of structured products – namely, Lehman Brothers-related notes and leveraged forward accumulators between 2003 and 2008”.