Enforcement action against Société Générale by the SFC
following the investigation of the HKMA
The Hong Kong Monetary Authority (HKMA) welcomes the enforcement outcome of the case concerning Société Générale, an authorized institution, announced by the Securities and Futures Commission (SFC) earlier today regarding the disclosure of certain fees and charges in secondary market transactions of over-the-counter bonds, options and structured notes by the wealth management unit in its Hong Kong branch (Note 1). The HKMA believes that this will serve as a deterrence to failings in internal controls in similar activities of banks in Hong Kong.
In accordance with the Memorandum of Understanding between the HKMA and the SFC, the HKMA referred this case together with the evidence collected to the SFC for it to consider taking further action after the HKMA’s investigation into the issues identified in its on-site examination and matters arising from a complaint.
The HKMA will continue to follow up with Société Générale to ensure that it has duly complied with the terms of the resolution.
“The HKMA is determined to maintain a high standard of conduct within the banking industry. Any suspected improper practice identified during our on-site examinations or when dealing with complaints may result in disciplinary action following our investigation. This case demonstrates the effectiveness of the current regulatory regime in supervising the securities activities of banks,” the Deputy Chief Executive of the HKMA, Mr Arthur Yuen said.
Hong Kong Monetary Authority
17 July 2012