Deutsche Bank fined $3 million by Hong Kong regulator
Hong Kong’s Securities and Futures Commission (SFC) has fined Deutsche Bank HK$23.8 million ($3.05 million) for regulatory breaches between 2015 and 2023.
Overcharging clients about $39 million in management and custodian fees, due to errors in applying discounted rates and fund valuations, News.Az reports, citing Reuters.
Failure to disclose investment banking relationships in more than 1,800 research reports issued between 2014 and 2021.
Incorrect product risk ratings for 40 ETFs, which led to transactions exceeding clients’ risk tolerance.
The issues were uncovered following self-reports from Deutsche between 2020 and 2023. The bank said all affected clients have been refunded and that internal controls have since been strengthened.
The fine comes a day after HSBC was penalized HK$4.2 million for similar disclosure failures in over 4,200 research reports from 2013–2021.
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