(Corrects in third paragraph to remove "on Friday")
HONG KONG, April 22 Hong Kong's Securities and
Futures Commission (SFC) said on Tuesday it reprimanded Royal
Bank of Scotland for internal control failures, fining
the bank HK$6 million ($773,800).
The SFC said in a statement RBS failed to detect and prevent
unauthorized trades in its emerging markets rates business in
the city in 2011, following the discovery of unauthorized trades
by former trader Shirlina Tsang.
Tsang was sentenced last year to 50 months in jail after
pleading guilty to fraud after was she caught falsifying records
of her trades, Reuters previously reported.
"We put in place a comprehensive remediation programme that
strengthened our governance and supervisory oversight, and our
control environment," RBS said in an e-mailed statement.
The SFC called RBS's systems and controls at the emerging
markets rates business "seriously inadequate and revealed
significant weaknesses in its procedures, management systems and
internal controls," but the regulator said its decision took
into consideration the bank's speedy action in alerting it to
"This deserves substantial credit and is the reason why
today's sanctions are not heavier ones," Mark Steward, the SFC's
head of enforcement, said in a statement.
($1 = 7.7538 Hong Kong Dollars)
(Reporting by Elzio Barreto; Editing by Erica Billingham and