STANDARD Chartered has made assurances that no further trading malpractices will take place after a clear separation of its merchant banking arm from its brokerage. Last week, the local watchdog, the Securities and Futures Commission (SFC) publicly censured Standard Chartered over the trading malpractices. Its brokerage arm, Standard Chartered Securities will withdraw from dealing with initial public offerings (IPOs) for the next nine months. The bank has played down comments that the findings will batter Standard Chartered's long-standing image in the territory. This is despite the fact that the penalty it received is the most severe in the history of local merchant banking. ''I believe this issue will be put behind us relatively quickly. We have learnt a lesson from it,'' said Michael Young, advisor to the Standard Chartered Group chairman. Mr Young declined to comment on whether the secondary listing of Standard Chartered Plc on the local bourse had been affected by the investigation and disciplinary measures. ''We are still going to keep it [the application for secondary listing] and are discussing with relevant people about it,'' he said. Mr Young explained the bank took a major step in appointing John McFarlane as chief executive of the bank to oversee the reorganisation of the investment banking business in Hong Kong. ''Our intention is to run the two business totally separately and managerially. The head of the brokerage and Standard Chartered Asia will separately and directly report to John,'' Mr Young said, adding it would have the effect of running two different businesses. In addition, the bank has tightened up and upgraded internal procedures by recruiting more people to do audits, which would be done more frequently. ''We have been involved in a comprehensive training programme for key staff,'' said Mr Young. Profits from local broking and merchant banking accounted for three per cent of Standard Chartered's pre-tax profits of GBP401 million (about HK$4.78 billion) in 1993, with initial public offerings (IPOs) accounting for about GBP1 million. But Mr Young said the impact on the group was relatively small, because IPO activities this year had been slow due to poor local sentiment.