HSBC fined HK$4.2m for disclosure breaches in research reports

It is estimated to have affected disclosures in over 4,200 reports.

HSBC has been fined HK$4.2m by the Securities and Futures Commission (SFC) of Hong Kong for breaching disclosure requirements over an eight-year period.

HSBC reportedly failed to disclose and/or made incorrect disclosures regarding its investment banking relationships with various companies covered in research reports published between 2013 and 2021.

It is estimated to have affected disclosures in over 4,200 research reports on Hong Kong-listed securities.

There is no evidence of client losses resulting from the disclosure issues, according to a joint press release issued by the SFC and the Hong Kong Monetary Authority (HKMA).

The investigation, conducted by the SFC in collaboration with the HKMA, follows a self-report made by HSBC.

“The SFC considers that HSBC has failed to ensure compliance with the disclosure requirement and the accuracy of disclosures in its research reports by acting with due skill and care, as well as implementing effective systems and controls,” the commission said in a statement.

HSBC is also said to have taken steps to enhance its systems and controls to prevent future breaches and was in cooperation with the HKMA and the SFC to resolve the concerns identified in the investigation.