HONG KONG, April 7 (Reuters) - Hong Kong’s markets regulator has fined two HSBC units HK$3.5 million ($451,456) for regulatory breaches.
The Securities and Futures Commission (SFC) said that some of the 53 funds managed by HSBC Investment Funds (Hong Kong) Limited and HSBC Global Asset Management (Hong Kong) had placed cash deposits with HSBC’s banking operations, and some of these deposits did not receive any interest.
The SFC said that HSBC had not taken sufficient steps to ensure that the cash had earned interest at a rate not lower than the prevailing commercial rate.
HSBC did not immediately respond to a request for comment.
$1 = 7.7527 Hong Kong dollars Reporting by Alun John and Sumeet Chatterjee; Editing by Raju Gopalakrishnan