Sun Hung Kai agrees to US$11m Minibond buyback after SFC concerns

Sun Hung Kai Investment Services has voluntarily agreed to purchase all outstanding Lehman Brothers Minibonds bought by eligible clients after the Hong Kong Securities and Futures Commission (SFC) issued a reprimand over the sales of the products since 2002. Sun Hung Kai will purchase the notes at a price equal to the principal amount invested, estimated to be HK$85 million.

The decision follows an investigation by the SFC which raised a number of concerns with Sun Hung Kai, including the adequacy of product due diligence on the products before they were distributed to eligible clients; the adequacy of training given to Sun Hung Kai retail sales staff on the products to enable them to understand the product and all its material risks; and the assessment of the level of risk for each particular series of Minibonds.

"Sun Hung Kai has not admitted any liability or

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