The Hong Kong Securities Regulatory Commission condemned UBS AG and UBS Securities Asia Limited (UBSSAL) (collectively referred to as UBS) and imposed fines of 9.8 million and 1.75 million, respectively, because they violated a number of regulatory requirements.
From September 2018 to November 2020, the Hong Kong Securities Regulatory Commission learned from UBS’s active report and the investigation results referred by the Hong Kong Monetary Authority (Hong Kong Monetary Authority) that there were a number of problems with UBS’s systems and monitoring measures. .
After investigation by the Hong Kong Securities Regulatory Commission, it was found that between May 2004 and May 2018, UBS did not properly disclose itsresearch reportCovers the financial interests of certain Hong Kong listed companies. The reason for the above-mentioned deficiency is that the old data sources used by UBS to track its shareholding status have multiple data logic errors.
The Hong Kong Securities Regulatory Commission also found that UBS AG did not:
During the period from November 2012 to February 2019, for 913 securities pooled lending transactions with 91 clients who were not professional investors, they obtained valid standing authorizations from these clients, and did not issue contract receipts to them ；
From August 2017 to June 2019, record customer transaction instructions received through 35 telephone lines, which involved more than 2,000 transactions executed for more than 400 customers;
During the period from January 2018 to June 2020, requesting transaction certificates from customers who have stated that they have conducted five or more derivative transactions in the past three years, resulting in failure to comply with applicable regulations in assessing the customer’s understanding of derivatives Guidelines; and
From October 2017 to February 2020, before selling structured notes issued by an issuer to 15 customers, disclose to these customers the features of the “stop-loss mechanism” of the structured notes and ensure that they understand and Risks associated with the characteristics of the “stop-loss mechanism”.
The Hong Kong Securities Regulatory Commission believes that UBS has not acted with appropriate skills and a cautious attitude, nor has it established adequate systems and monitoring measures to ensure compliance with applicable regulatory requirements.
The Hong Kong Securities Regulatory Commission has considered all relevant circumstances when deciding on the above sanctions, including:
UBS took remedial actions after identifying relevant violations to strengthen internal control measures and systems;
UBS AG claims compensation to customers who have not been affected by the features of the “stop-loss mechanism” of structured notes;
UBS AG agreed to appoint an independent review agency to review the effectiveness and adequacy of the remedial measures taken by it in response to deficiencies in telephone recording; and
UBS cooperated with the Hong Kong Securities Regulatory Commission to resolve the concerns of the Hong Kong Securities Regulatory Commission.
(Source: Zhitong Finance Network)
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