Two Canadian HSBC Subsidiaries Settle with BCSC for $320K
- Two of HSBC's Canadian investment subsidiaries were found to have levied excess fees on their respective clients.
The British Columbia Securities Commission (BCSC), one of Canada’s leading independent financial market regulators, has reached a settlement with a pair of HSBC subsidiaries, after charging excess fees to select clients, according to a BCSC statement.
The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.
The settlement pits HSBC Investment Funds Canada Inc. (HIFC) and HSBC Private Wealth Services Inc. (HPWS) against investors, following a BCSC investigation that found that the entities had wrongly charged overzealous fees to client accounts. The nature of the fees stemmed from lapses in control and supervision, namely as HIFC in particular already institutes a policy to help guide clients to lower priced investment funds and services.
However, despite the measures in place, clients were still charged extra fees. By extension, HPWS utilizes a similar policy that seeks to advise and steer its clients in terms of fees – like its counterpart, the group’s inconsistencies in this area led to select clients incurring larger than normal fees.
Pay Up
Despite the violations, both HIFC and HPWS cooperated fully the BCSC investigation and staff throughout the duration of the review, also issuing a full compensation plan. This included the reimbursement by HIFC of over 4,651 client accounts for a total of $7.1 million, while HPWS compensated a total of 10 client accounts for $10,100.
Moreover, HIFC and HPWS also paid a collective settlement of $300,000 to BCSC, as well as $20,000 in costs incurred.
Earlier this month, the BCSC also lobbied a fine of $400,000 in penalties and the permanent ban of John Ferdinand Alexander Spangenberg (also known as ‘Johny’ and ‘JFA’) and two of his companies in connection with capital markets fraud. The edict followed after a panel investigation in March 2016 Spangenberg – a former resident of Holland - and two of his entities, Odyssey Renewable Growth Inc. and geoTreasuries Clean Energy Limited, had fraudulently raised over $170,000 from at least 6 B.C. residents between June 2011 and December 2013.
The British Columbia Securities Commission (BCSC), one of Canada’s leading independent financial market regulators, has reached a settlement with a pair of HSBC subsidiaries, after charging excess fees to select clients, according to a BCSC statement.
The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.
The settlement pits HSBC Investment Funds Canada Inc. (HIFC) and HSBC Private Wealth Services Inc. (HPWS) against investors, following a BCSC investigation that found that the entities had wrongly charged overzealous fees to client accounts. The nature of the fees stemmed from lapses in control and supervision, namely as HIFC in particular already institutes a policy to help guide clients to lower priced investment funds and services.
However, despite the measures in place, clients were still charged extra fees. By extension, HPWS utilizes a similar policy that seeks to advise and steer its clients in terms of fees – like its counterpart, the group’s inconsistencies in this area led to select clients incurring larger than normal fees.
Pay Up
Despite the violations, both HIFC and HPWS cooperated fully the BCSC investigation and staff throughout the duration of the review, also issuing a full compensation plan. This included the reimbursement by HIFC of over 4,651 client accounts for a total of $7.1 million, while HPWS compensated a total of 10 client accounts for $10,100.
Moreover, HIFC and HPWS also paid a collective settlement of $300,000 to BCSC, as well as $20,000 in costs incurred.
Earlier this month, the BCSC also lobbied a fine of $400,000 in penalties and the permanent ban of John Ferdinand Alexander Spangenberg (also known as ‘Johny’ and ‘JFA’) and two of his companies in connection with capital markets fraud. The edict followed after a panel investigation in March 2016 Spangenberg – a former resident of Holland - and two of his entities, Odyssey Renewable Growth Inc. and geoTreasuries Clean Energy Limited, had fraudulently raised over $170,000 from at least 6 B.C. residents between June 2011 and December 2013.