The regulator said the asset manager entered into unnecessarily complex structured note transactions for a private fund without adequately assessing multiple red flags or exercising independent investment discretion.
Hong Kong's Securities and Futures Commission (SFC) has reprimanded and fined China Industrial Securities International Asset Management (CISIAM) HK$6.8m (US$870,000) for regulatory failures linked to a private fund that invested in structured notes referencing debt issued by a related party. Before proceeding with a proposed fund arrangement, a fund manager should critically assess an investor-driven proposal for potential red flags The regulator found that CISIAM failed to properly identif