|
HKMA refers 40 Lehman-Brothers-related cases to the SFC for further action The Hong Kong Monetary Authority (HKMA) has today (Friday) referred to the Securities and Futures Commission (SFC) 40 cases involving complaints of alleged misconduct in respect of investment products related to Lehman Brothers for it to decide whether to take further action. The 40 cases, which are the second batch of Lehman-Brothers-related cases referred in this way, involve alleged misconduct by two licensed banks in Hong Kong, one of which was subject to referral in the first batch of cases referred to below. On 17 October 2008, the HKMA referred the first batch of 24 Lehman-Brothers-related cases to the SFC for further action. These cases had been reviewed by the HKMA, which had determined that there were sufficient grounds for referring them to the SFC. "In light of the large number of complaint cases, the HKMA, from now on, will streamline the investigation process by identifying groups of cases with common features which appear to justify referral to the SFC in batches for it to decide whether to take further action. The HKMA will cooperate with the SFC in carrying out further investigations in order to expedite the process," the HKMA spokesperson said. "This arrangement is consistent with the principles established under the Securities and Futures Ordinance and the Memorandum of Understanding between the HKMA and the SFC. Sanctions that the SFC may impose on a bank include suspension or revocation of registration, reprimands, fines or prohibition orders," the HKMA spokesperson added. "The HKMA will continue to work on the large number of complaints that still need to be assessed as quickly as possible, and in a fair and objective manner" the spokesperson said. The HKMA had, up to 23 October 2008, received 16,301 complaints concerning Lehman-Brothers-related products. Apart from the 64 cases referred to the SFC so far, the HKMA had formally opened investigations on 285 complaints and was currently seeking further information on 1,942 complaints. 28 complaints had been found to lack sufficient prima facie evidence to support further action (A table summarising the complaints received so far is attached).
For further enquiries, please contact:
Hong Kong
Monetary Authority
 |