The SFC says the bank’s misclassification led the bank to sell professional investor-restricted products, such as accumulators and decumulators, to non-professional investor clients for 12 years.
UBS AG has been reprimanded and fined by the Securities and Futures Commission of Hong Kong (SFC) for HK$8m (US$1.03m) over its ‘failure to ensure accurate classification of professional investors,’ the regulator said on Monday (20 October). The city’s financial watchdog’s investigation found the bank verified its clients’ professional investor status by an automated process, which was based upon the bank’s ‘misinterpretation of the minimum portfolio re