The Hong Kong Securities and Futures Commission (SFC) has reprimanded and fined The Hongkong and Shanghai Banking Corporation Limited (HSBC) HKD 4.2 million for breaching the disclosure requirement when publishing research reports on Hong Kong-listed securities over an eight-year period. Following a self-report by HSBC, the Hong Kong Monetary Authority (HKMA), in collaboration with the SFC, investigated and found that HSBC failed to disclose and or made incorrect disclosures about its investment banking relationships with various companies covered in research reports published between 2013 and 2021. The issues were attributed to deficiencies in HSBC’s data recording and mapping across systems and were estimated to have affected disclosures in more than 4,200 research reports. The SFC concluded that HSBC failed to ensure compliance with the disclosure requirement and the accuracy of disclosures by acting with due skill and care and by implementing effective systems and controls, and noted in determining the sanction that there was no evidence of client losses, HSBC conducted root-cause and scope reviews, enhanced systems and controls, and co-operated with the HKMA and SFC.
Hong Kong Securities & Futures Commission 2025-08-26
Hong Kong Securities and Futures Commission reprimands and fines HSBC HKD 4.2 million for disclosure failures in research reports
The Hong Kong Securities and Futures Commission (SFC) fined The Hongkong and Shanghai Banking Corporation Limited (HSBC) HKD 4.2 million for breaching disclosure requirements in research reports on Hong Kong-listed securities from 2013 to 2021. HSBC's self-report led to an investigation revealing incorrect disclosures due to data recording deficiencies affecting over 4,200 reports. HSBC has since enhanced systems and controls, conducted reviews, and cooperated with authorities, with no evidence of client losses found.