Julius Baer fined
Source: Xinhua |
June 29, 2010, Tuesday
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Print Edition
Print Edition
JULIUS Baer (Hong Kong) Ltd, which is licensed to provide services only to professional investors in Hong Kong, will be fined HK$3 million (US$385,000) for not taking adequate steps to identify clients as professionals, the Hong Kong Securities and Futures Commission said yesterday.
"The difference between professional investors and ordinary retail customers is a profoundly important one," said Mark Steward, the SFC's executive director of enforcement. Firms that do not classify customers properly, in strict compliance with the requirements, impose undue risks on those customers, he said.
An SFC investigation revealed that Julius Baer, when detected between October 2006 and July 2008, also failed to conduct an annual confirmation as to whether its clients continued to fulfill the professional investor requirements; and to maintain adequate written records of its investment advice given to clients.
However, according to SFC, the firm didn't admit to the failures as identified by the SFC. They will engage an independent reviewer to review its internal controls in relation to its compliance with the regulatory requirements for treating clients as professional investors and the provision of investment advice.
"The difference between professional investors and ordinary retail customers is a profoundly important one," said Mark Steward, the SFC's executive director of enforcement. Firms that do not classify customers properly, in strict compliance with the requirements, impose undue risks on those customers, he said.
An SFC investigation revealed that Julius Baer, when detected between October 2006 and July 2008, also failed to conduct an annual confirmation as to whether its clients continued to fulfill the professional investor requirements; and to maintain adequate written records of its investment advice given to clients.
However, according to SFC, the firm didn't admit to the failures as identified by the SFC. They will engage an independent reviewer to review its internal controls in relation to its compliance with the regulatory requirements for treating clients as professional investors and the provision of investment advice.
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