HSBC fined £2.4m by Hong Kong's pensions regulator
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HSBC has been fined HKD 24m (£2.4m) by Hong Kong's pension regulator, it was reported on Monday, for offering incentives to unauthorised agents to promote its Mandatory Provident Fund (MPF) scheme in 2020 and 2021.
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The Mandatory Provident Fund Schemes Authority (MPFA) announced the penalty and disclosed that Yip Sze Ki, the former head of pensions at HSBC, had been barred from holding senior executive positions at any MPF operator for 18 months.
According to Reuters, the MPFA investigation concluded that HSBC breached the conduct requirements under the Mandatory Provident Fund Schemes Ordinance.
HSBC, the largest lender in Asia, acknowledged the disciplinary action and confirmed its full cooperation with the investigation.
The bank said it had since implemented corrective measures.
Reuters said the MPFA considered various factors, including the management of over HKD 240m in assets from more than 2,400 scheme members, before deciding on the disciplinary action.
The regulator highlighted that HSBC's use of unregistered intermediaries to market MPF schemes undermined the regulatory framework's integrity.
Reporting by Josh White for Sharecast.com.