Compliance
Hong Kong Regulator Fines MIS Services $386,000 Over Regulatory Breaches

Throughout the investigation period, Standard Chartered Investment Services was a wholly-owned subsidiary of Standard Chartered Bank (Hong Kong).
Hong Kong's Securities
and Futures Commission has reprimanded and fined MIS Services, formerly
Standard Chartered Investment Services, HK$3 million
($386,816) over compliance failings relating to the fund manager
code of conduct.
An investigation conducted by the financial watchdog found that
SCIS failed to ensure there were at least two “key personnel” who
met the minimum investment experience of five years in managing
retirement funds or public funds as required by one of the SFC's
codes of conduct for a period of more than nine years.
From September 2013 through to July 2015, SCIS did not have any
key personnel who met the minimum investment experience
requirement. For a period of more than seven years spanning
between October 2000 and September 2013, SCIS had only one key
personnel who conformed with the regulatory requirements. As a
result, SCIS failed to implement adequate policies and procedures
for the operation and monitoring of the investment experience of
its key personnel, the SFC said.
Additionally, the group failed to communicate to its staff
members of their designation as key personnel and advise them of
the necessary investment experience required for the
role.
Towards the end of last year,
the SFC introduced heightened regulatory measures to increase
the accountability of the senior management of all licensed
institutions.