Hong Kong regulators fine UBS £40m for a decade of overcharging
UBS has been slapped with a HK$400m (£40m) fine from Hong Kong regulators for overcharging thousands of clients.
The Hong Kong Securities and Futures Commission (SFC) said today that the Swiss banking giant charged too much in fees for some of its clients between 2008 and 2017.
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The charge is equal to the largest ever fine to be levied on a bank in the Asian territory.
An investigation by the SFC found that the overcharging hit 5000 Hong Kong managed client accounts in roughly 28,700 transactions.
The lender had overcharged clients on ‘post-trade spread increases’ and charges in excess of standard disclosures and rates during the period of almost a decade, the SFC said.
UBS said in a statement: “The relevant conduct predominantly relates to limit orders of certain debt securities and structured note transactions, which account for a very small percentage of the bank’s order processing system.”
It added: “After a comprehensive review, UBS self-identified and reported this matter to the relevant Regulators…The behaviour of the individuals involved is unacceptable and in strong contrast to the behavioural principles of our firm.”
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The fine comes half a year after UBS was among a number of banks that were also sanctioned following concerns over their work on initial public offerings (IPO) within Hong Kong.