Hong Kong’s Securities and Futures Commission has fined Deutsche Bank for issuing incorrect statements to its prime brokerage clients.
The SFC slapped Deutsche Bank with a HK$2.45 ($316,000) fine for issuing incorrect statements to its prime brokerage clients for 12 years and delaying the reporting of this failure to the regulator, according to a statement.
The incorrect statements issued were a result of a «design defect» in its front office system which displayed untradeable shares as settled and tradable. This effectively led some of the bank’s prime brokerage clients to oversell bonus shares in July 2018 and the failure was not reported to the SFC until February 2019 when an internal investigation was completed.
«We are pleased to put this matter, which was remediated three years ago, fully behind us,» said a spokesperson for Deutsche Bank.
