SFC reprimands and fines Mega International Commercial Bank Co., Ltd. $7 million for regulatory breaches over CIS sale

7 May 2020



The Securities and Futures Commission (SFC) has reprimanded and fined Mega International Commercial Bank Co., Ltd. (MICBC) $7 million over MICBC’s internal system and control failures in relation to the sale of collective investment schemes (CISs) (Note 1).

Following a referral from the Hong Kong Monetary Authority (HKMA), the SFC conducted an investigation which found that, in the course of selling CISs to clients between August 2014 and July 2015, MICBC had failed to implement adequate and effective systems and controls to (Note 2):

In deciding the sanction, the SFC took into account that:

End

Notes:

  1. MICBC is registered under the Securities and Futures Ordinance to carry on business in Type 1 (dealing in securities) regulated activity.
  2. The case was referred to the SFC by the HKMA which conducted an investigation into MICBC after identifying various irregularities in MICBC’s selling practices of CISs during an onsite examination.

A copy of the Statement of Disciplinary Action is available on the SFC website



Page last updated : 7 May 2020