On 13 March, HK SFC fined Deutsche Bank HK$8.3mn for short sales.

  • Fined Deutsche Bank and its wholly-owned subsidiary Deutsche Securities Asia.
  • Re short position reports, unlicensed activities and segregation of client money.

Short Positions

  • Breach of reporting requirements, led to a failure to report 792 short positions.
  • Short position at close of trading on HKEX, must be reported in set timeframe.

Research Reports

  • Published 49 research reports on futures contracts, without Type 5 registration.
  • Firm that distribute research on futures is required to be registered or licensed
    with the SFC to carry on Type 5 advising on futures contracts regulated activity.

Client Money

  • Did not segregate client monies in 117 incidents between January 2010 and 2014.
  • Required to pay client money into a segregated account, within day of receipt.

Sanctions

  • Under the resolution, SFC publicly reprimanded and fined bank total of $8.3mn.
  • SFC took into account self-reporting and cooperation in resolving SFC concerns.
  • Remedial measures to strengthen internal controls, to avoid similar recurrence.
  • Undertaking to provide report prepared by internal audit team after 12 months.