HSBC (NYSE:HSBC) has been slapped with a HK$4.2 million ($537,683) fine by Hong Kong authorities for failing to properly disclose investment banking relationships in its research reports, the regulators announced Tuesday.
According to a joint statement from the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority, the bank did not adequately reveal its investment banking ties with Hong Kong-listed companies in over 4,200 research reports issued between 2013 and 2021.
The investigation was initiated after HSBC voluntarily reported the issue to regulators.
“The disclosure failures arose from shortcomings in HSBC’s data recording and mapping systems,” the statement said. Regulators also clarified that there was no evidence clients suffered financial losses due to these lapses.
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