Hong Kong’s securities regulator has fined BNP Paribas Wealth Management HK$4 million ($515,703) for overcharging clients between January 1, 2011 and December 31, 2013.
The Securities and Futures Commission (SFC) said the monetary benefits – including charges, mark-ups and fees – from around 2,300 client transactions exceeded the levels the bank represented in its documentation.
The total overcharged was around HK$9.5 million. The affected transactions covered investment products including equities, bonds, structured products, options, swaps and funds.
The SFC said the level of fine would have been higher, but for the fact that BNPP WM:
- agreed to engage an independent reviewer to review and ensure all overcharged amounts are returned to affected clients;
- has repaid all overcharged amounts received from current clients and is in the process of repaying former clients;
- self-reported the matter to the SFC and Hong Kong Monetary Authority (HKMA);
- proactively co-operated with the SFC in resolving the concerns; and
- has an otherwise clean disciplinary record.
Affected clients may contact BNP Paribas in relation to the repayment of the overcharged amounts.
BNPPWM is an authorised financial institution under the supervision of HKMA and is a registered institution carrying on business in type 1 (dealing in securities), type 4 (advising on securities) and type 9 (asset management) regulated activities.