<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published January 24, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>HK broker offers full minibonds refund
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(Hong Kong)
A LEADING Hong Kong brokerage has agreed to fully refund hundreds of investors who bought complex financial products at the centre of a misselling scandal, the city's market watchdog said.
Sun Hung Kai Investments agreed to repay around HK$85 million (S$16.5 million) after the Securities and Futures Commission (SFC) reprimanded its sale of so-called minibonds backed by collapsed US bank Lehman Brothers.
The deal covers around 300 investors, who will be offered the full amount they invested in the minibonds, the SFC said in a statement.
The value of the products collapsed after the Wall Street icon went bankrupt in September, sparking a wave of protests by investors who lost large sums of money.
The blanket refund is the first action of its kind in the city, which prides itself on its free market values.
'We are very pleased with the outcome that has been achieved and we believe the approach adopted has produced a result which is in the best interests of the investors,' SFC's chief executive officer Martin Wheatley said in the statement.
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</TD></TR></TBODY></TABLE>Following an investigation, the SFC criticised the training given to staff who sold the products, the advice sales staff gave to investors, as well as record-keeping.
If Sun Hung Kai Investments does not improve its systems within six months, the SFC will suspend its licence to sell unlisted or structured products, the statement, released on late Thursday, said.
More than 40,000 Hong Kong investors put a total of HK$15.7 billion of their savings into minibonds and other complex products backed by Lehman.
A total of 21 banks and three brokerage firms were involved in the sale of minibonds, and regulators are continuing to investigate whether other institutions were involved in misselling. -- AFP
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>HK broker offers full minibonds refund
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
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A LEADING Hong Kong brokerage has agreed to fully refund hundreds of investors who bought complex financial products at the centre of a misselling scandal, the city's market watchdog said.
Sun Hung Kai Investments agreed to repay around HK$85 million (S$16.5 million) after the Securities and Futures Commission (SFC) reprimanded its sale of so-called minibonds backed by collapsed US bank Lehman Brothers.
The deal covers around 300 investors, who will be offered the full amount they invested in the minibonds, the SFC said in a statement.
The value of the products collapsed after the Wall Street icon went bankrupt in September, sparking a wave of protests by investors who lost large sums of money.
The blanket refund is the first action of its kind in the city, which prides itself on its free market values.
'We are very pleased with the outcome that has been achieved and we believe the approach adopted has produced a result which is in the best interests of the investors,' SFC's chief executive officer Martin Wheatley said in the statement.
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If Sun Hung Kai Investments does not improve its systems within six months, the SFC will suspend its licence to sell unlisted or structured products, the statement, released on late Thursday, said.
More than 40,000 Hong Kong investors put a total of HK$15.7 billion of their savings into minibonds and other complex products backed by Lehman.
A total of 21 banks and three brokerage firms were involved in the sale of minibonds, and regulators are continuing to investigate whether other institutions were involved in misselling. -- AFP
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