SINGAPORE: HSBC, the largest lender in Asia, has been fined HK$24 million (approx. S$4.15 million) by Hong Kong’s Mandatory Provident Fund Schemes Authority (MPFA).
The penalty stems from HSBC’s offering incentives to “unregistered intermediaries” to enrol clients in its Mandatory Provident Fund (MPF) scheme between 2020 and 2021.
According to Channel News Asia, Yip Sze Ki, the former head of pensions at HSBC, will also face an 18-month disqualification from senior executive roles within any MPF operator.
In a statement released on Friday, the MPFA highlighted that HSBC’s actions “did not comply” with the Mandatory Provident Fund Schemes Ordinance’s conduct requirements.
HSBC told Reuters that it acknowledged the disciplinary action and collaborated fully with the pension regulator’s investigation, swiftly implementing corrective actions.
“We take our obligations to comply with applicable regulations very seriously and are pleased to have resolved the matter,” the HSBC spokesperson said.
The MPFA’s decision considered HSBC’s management of over HK$240 million assets across more than 2,400 scheme members.
The MPFA emphasised that HSBC’s allowance of unregistered intermediaries to sell and promote MPF schemes strikes at the heart of the regulatory regime. /TISG
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