HSBC Private Bank is appealing a $78m fine imposed by Hong Kong’s securities regulator in connection with its sales of structured products including Lehman Brothers -related notes between 2003 and 2008.
Bloomberg News reports that the appeal hearing began in the city on Wednesday after the Securities and Futures Commission previously alleged failures in internal controls and sales practices in relation to the sale of the Lehman notes and products called Leveraged Forward Accumulators.
Anthony Neoh, the bank’s senior counsel, told the hearing that the penalty was excessive. Private-bank clients had a higher risk appetite than retail-bank clients and the case featured “vanilla-type” products, the lawyer said.
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