Hong Kong's Securities and Futures Commission toughened its stance against errant banks in 2018. The fines are not as punitive as those levied in the U.S. but the trajectory is unmistakably upwards.
The Securities & Futures Commission (SFC) of Hong Kong is running out of patience for global private and investment banking powerhouses, if its fine collection in 2018 is any indicator.
Although the $24.7 million it collected last year was a 61 percent drop from what it collected in the previous year, if one excluded the record $51 million fine it imposed on HSBC Private Bank (Suisse) in 2017, collections in 2018 were actually double that in 2017 and three times that in 2016. The data was part of a report released by «magic circle» law firm Freshfields Bruckhaus Deringer.
Sharp Uptake
One industry veteran has called the sharp uptake in fines a «trend» and the SFC has confirmed that it intends to prosecute 60 individuals and companies in 2019. Amongst those the regulator found wanting, Citigroup Global Markets Asia was fined $7 million for its role in sponsoring a doomed Real Gold Mining IPO which was floated in 2009 but the company was delisted because of financial mismanagemnet only two years later.
UBS disclosed in its annual report last year that it was facing an 18 month IPO ban and $152 million fine but was appealing the SFC's ruling. «The fines are not as punitive as those levied in the U.S. but the trajectory is unmistakably upwards,» said the industry veteran.
