Deutsche Bank Faces Multi-Million Fine in Hong Kong for Regulatory Breaches
Deutsche Bank has been fined HK$23.8 million by Hong Kong's regulator due to breaches, including client overcharging and nondisclosure of investment banking ties. The bank has since fortified its controls and refunded affected clients, after self-reporting issues spanning from 2015 to 2023.
Deutsche Bank has been slapped with a HK$23.8 million fine by Hong Kong's Securities and Futures Commission (SFC) for various breaches occurring from 2015 to 2023. The violations include overcharging clients on management fees and failing to disclose investment banking relationships in research reports.
The disciplinary action was initiated following investigations triggered by Deutsche Bank's self-reports from December 2020 to December 2023. The bank has reportedly addressed the issues and enhanced internal controls to prevent future occurrences.
The SFC highlighted that the overcharging resulted from misapplied discounted management fees and incorrect fund valuations, leading to excessive charges. Additionally, Deutsche Bank failed to disclose investment banking ties in numerous reports and incorrectly rated risk levels for some products, affecting clients' risk tolerances.
(With inputs from agencies.)
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