Reuters - A Hong Kong tribunal on Tuesday imposed a fine of HK$400m ($51m) on the private banking unit of HSBC in a case related to the sale of Lehman Brothers-linked structured financial products between 2003 and 2008.
The Securities and Futures Commission (SFC) had originally imposed a penalty of HK$605m in 2015 on the bank for its failure to meet "principles-based regulatory standards" at that time, which was later appealed by HSBC.
The securities regulator had started its investigation into the issue after some HSBC private banking clients' complained of losses arising from investments in structured financial products of Lehman Brothers, which filed for bankruptcy in 2008.
The Hong Kong Securities and Futures Appeals Tribunal (SFAT) said that HSBC's private banking unit was "culpable of material systemic failings in its marketing and sale of derivative products" in that period.
The tribunal also said the HSBC private banking unit's registration for Type 4 regulated activity, which relates to advising on securities, would be suspended for a period of one year beginning Tuesday.
It also "partially suspended" its registration for dealing in securities for a period of one year, according to a copy of the order seen by Reuters.