The Securities and Futures Commission (SFC) has reprimanded The Hongkong and Shanghai Banking Corporation Limited (HSBC) and imposed a fine of HK$4.2 million for breaching disclosure requirements in research reports related to Hong Kong-listed securities over an eight-year period from 2013 to 2021. The violations stemmed from HSBC’s failure to adequately disclose its investment banking relationships with companies covered in these reports, as well as instances of incorrect disclosures. These issues were attributed to deficiencies in HSBC’s data recording and mapping across its systems, affecting more than 4,200 research reports. The SFC concluded that HSBC did not act with due skill and care, nor did it implement effective systems and controls to ensure compliance. In determining the penalty, the SFC noted that there were no client losses linked to the breaches, that HSBC took steps to identify the root causes, and that it cooperated fully with the investigation.
Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/08/20250826-4/
