Hong Kong Fines UBS $1.5 Million for Compliance Failures

What’s new: Hong Kong’s Securities and Futures Commission (SFC) has fined Swiss financial giant UBS AG and its local subsidiary, UBS Securities Asia Ltd., a total of HK$11.55 million ($1.5 million) for a variety of rule violations, according to a Tuesday statement.

Details: The SFC referred to the two companies collectively as UBS, saying that between May 2004 and May 2018, “UBS failed to make proper disclosure of its financial interests in some Hong Kong listed companies covered in its research reports” due to data feed logic errors in a legacy data source it used for tracking its shareholding positions.

The SFC also found out several other compliance failures of UBS AG, including failures to obtain valid standing authorities from some clients and to record client order instructions received through telephone lines.

“UBS failed to act with due skill and care and put in place adequate systems and controls to ensure compliance with the applicable regulatory requirements,” the SFC said in the statement.

Hong Kong is a major operating hub for UBS, which provides investment banking and asset management services in the city.

Related: UBS Seeks to Raise Stake in China Joint Venture to 67%

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)

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