Hong Kong’s Securities and Futures Commission (SFC) has reprimanded and fined MIS Services Ltd, formerly known as Standard Chartered Investment Services Limited, $3 million for its failure to comply with certain regulatory requirements.
An SFC investigation found that Standard Chartered Investment Services failed to ensure that there were at least two key personnel who met the minimum investment experience of five years in managing retirement and public funds, as stipulated for a period of over nine years from October 2000 to July 2015.
Market Trading Ideas for May 10-14Go to article >>
From September 2013 to July 2015, the firm did not have any key personnel who met the minimum investment experience requirement. Furthermore, for a period of over seven years between October 2000 and September 2013, there was only one key member of staff who met the requirements.
Standard Chartered Investment Services only discovered that the two staff members that it had designated as key personnel from September 2013 to July 2015 did not have the necessary experience when informed by the SFC of such in July 2015.
The firm failed to implement adequate policies and procedures for the operation and monitoring of the investment experience of key personnel. It also failed to communicate to staff members their designation as key personnel and to advise them of the necessary investment experience required for the role.
Standard Chartered Investment Services has since taken steps to strengthen its policies and procedures to ensure compliance with the minimum investment experience required for key personnel.