Progress of the HKMA's investigations in Lehman-Brothers-related cases
The Hong Kong Monetary Authority (HKMA) announced today (Friday) that investigation of over 99% of a total of 21,862 Lehman-Brothers-related complaint cases received has been completed. These include:
- 15,769 cases which have been resolved by a settlement agreement reached under section 201 of the Securities and Futures Ordinance (Note 1);
- 3,466 cases which have been resolved through the enhanced complaint handling procedures required by the settlement agreement;
- 2,522 cases which were closed because insufficient prima facie evidence of misconduct was found after assessment or no sufficient grounds and evidence were found after investigation;
- 25 cases which are under disciplinary consideration after detailed investigation by the HKMA, of which proposed disciplinary notices are being prepared; and
- 41 cases in respect of which investigation work has been completed and are going through the decision process to decide whether there are sufficient grounds for disciplinary actions or whether the cases should be closed because of insufficient evidence or lack of disciplinary grounds.
Investigation work is underway for the remaining 37 cases.
For general enquiries, please contact:
Dedicated hotline, at 8100 2314
Hong Kong Monetary Authority
13 July 2012
- These are cases where eligible customers accepted the settlement offers made by the distributing banks in respect of Lehman Brothers-related investment products in accordance with the agreements reached under section 201 of the Securities and Futures Ordinance. The HKMA has informed the distributing banks that, since these agreements contain detailed arrangements for settlement of claims and the implementation of robust systems for selling unlisted structured investment products and dealing with related customer complaints in future, it is not the intention of the HKMA to take any enforcement action in relation to the Lehman Brothers-related cases that involve eligible customers who accept the settlement offers made by the distributing banks pursuant to these agreements.
- Some figures in the table have been adjusted after re-grouping of certain complaints.