
HSBC fined £100,000 by FSA over inaccuracy
LOSSES & LAWSUITS
The notice triggered an industry-wide examination of the issue, prompted by a 'Dear CEO' letter the FSA issued on the same day.
According to the FSA, in July 2005 it requested certain trading information from HSBC Stockbroker Services (HSS) which, when reviewed, revealed that HSS had reported the client transaction as a 'sale' prior to a positive announcement and a 'purchase' after it.
Following discussions between the FSA and HSBC, it emerged that transaction reports being made through HSS had been inaccurately representing client purchases as client sales and vice versa.
The regulator noted that it relies on firms to provide accurate transaction reports to enable it to monitor the market effectively, and failing to do so could affect the FSA's ability to maintain confidence in the financial markets and reduce financial crime.
HSBC has taken the necessary remedial steps to improve its systems and controls in this area, and has co-operated fully with the FSA's investigation into this matter, the regulator said.
The FSA has previously fined Bear Stearns £40,000 and UBS £100,000 for inaccuracies in transaction reporting.
The 'Dear CEO' letter can be found at: http://www.fsa.gov.uk/pubs/ceo/transaction_reporting.pdf
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
SVB opens floodgates on liquidity buffers debate
European regulator says HQLAs should be booked at fair value, but not everyone agrees
SEC cyber rules risk creating web of confusion and costs
Proposals would require breach notifications, public disclosures and annual cyber assessments
Indonesia readies close-out netting after passing P2SK Law
Bankruptcy law changes remove close-out netting obstacles
Top 10 operational risks: The umpire strikes back
Tougher regulatory enforcement, new consumer rules and rise of ESG are ringing alarm bells
Behnam comments fan JSCC hopes for US client clearing
Japan clearing exec welcomes CFTC chair’s pledge to keep discussing OTC clearing status for non-US houses
SVB wouldn’t happen in Europe, says Deutsche CIB head
Campelli also thinks Credit Suisse’s bailed-in AT1 bonds acted as originally intended
How Finma milked Credit Suisse’s CoCos to close UBS deal
An unusual clause in Swiss AT1 bonds allowed them to be written off, but could others follow suit?