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The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) has today (February 27) referred to the Securities and Futures Commission (SFC) 24 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 24 cases, which are the eighteenth batch of Lehman-Brothers-related cases referred in this way, involve alleged misconduct by one licensed bank in Hong Kong.
Since October 17, 2008 the HKMA has referred a total of 349 Lehman-Brothers-related cases, involving 16 banks, to the SFC for further action. These cases have been reviewed by the HKMA, which has determined that there are sufficient grounds for referring them to the SFC.
The HKMA has, up to February 26, received 20,308 complaints concerning Lehman-Brothers-related products, of which 20,132 complaints have gone through the preliminary assessment process. Apart from the 349 cases referred to the SFC so far, the HKMA has formally opened investigations on 4,708 complaints and is currently seeking further information on 14,522 complaints. 553 complaints have been found to lack sufficient prima facie evidence to support further action (A table summarising the complaints received so far is attached).
Commenting separately on voluntary settlements between banks and their customers, an HKMA spokesperson said that according to figures collected by the HKMA from the distributing banks, up to February 25, a total of 4,914 complaints about Lehman-related investment products have resulted, or will soon result, in voluntary settlement, including compensation either in part or in full, between the complainants and the banks concerned, following banks' own investigations. Of these voluntary settlements, 3,018 have already been concluded. Discussions about settlements are in progress in the remaining 1,896 further cases.
"While the HKMA welcomes settlements between banks and complainants, its investigations into allegations of mis-selling will be closed simply because of settlements or withdrawals of complaint cases. The HKMA will, regardless of any terms of a settlement, continue its investigation into cases where evidence of mis-selling is revealed," the spokesperson added.
For further enquiries, please contact:
Thomas Chan, Communications Chief, at 2878 1480 or
Hing-fung Wong, Manager (Communications), at 2878 1802
Ends/Friday, February 27, 2009
Issued at HKT 19:11
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