Latest Mega International Commercial Bank News
May 11, 2020
SFC fines Mega International Commercial Bank with almost EUR 850.000 Monday 11 May 2020 13:28 CET | News The Securities and Futures Commission (SFC) has announced that it has reprimanded and fined China-based Mega International Commercial Bank (MICBC). According to Hubbis , the bank was fined EUR 850.000 over its internal system and control failures in relation to the sale of collective investment schemes (CISs). Following a referral from the Hong Kong Monetary Authority (HKMA), the SFC conducted an investigation which found that, in the course of selling CISs to clients between August 2014 and July 2015, MICBC had failed to properly assess its clients’ investment objective, risk tolerance level and knowledge of derivatives; ensure the investment recommendations and/or solicitations made to its clients were reasonably suitable in all the circumstances; conduct adequate product due diligence on certain funds; identify funds which constituted derivative products. MICBC engaged an independent reviewer to validate whether the findings raised by the HKMA during the onsite examination are fully addressed and whether its control mechanisms operate effectively in accordance with its internal policies and procedures, and undertook to submit the validation review report to the SFC and the HKMA as soon as it is available. MICBC cooperated with the SFC in resolving its concerns, and it has no previous disciplinary record with the SFC.