Hong Kong’s pensions regulator has fined HSBC for offering incentives to unregistered intermediaries.
The Mandatory Provident Fund Schemes Authority (MPFA) – Hong Kong’s pensions regulator – has fined HSBC HK$24 million ($3.1 million) for offering incentives to unregistered intermediaries, according to a statement.
HSBC operated a referral program between April 2020 and February 2021 with introducers offered referral fees if referred clients made contributions to the bank’s pensions scheme. Following a referral from the MPFA, the Hong Kong Monetary Authority investigated the matter and found that HSBC did not comply with related conduct requirements.
Former Pensions Head
Ex-HSBC head of pensions Yip Sze Ki, who was responsible for overseeing the approval and implementation of the referral program, was also disqualified from taking up senior executive positions at any Mandatory Provident Fund (MPF) operator for the next 18 months.
«It is a fundamental regulatory requirement that only registered intermediaries with requisite qualifications and training are allowed to sell and market MPF schemes,» said MPFA chief operating officer and executive director Cynthia Hui. «Allowing unregistered intermediaries to do so strikes at the heart of the regulatory regime, which is not tolerated under any circumstances.»
