HONG KONG, May 18 (Reuters) - Hong Kong’s financial regulators said on Monday they would review the charges levied by brokers when making trades for clients, including potential overcharging.
The Securities and Futures Commission (SFC) and Hong Kong Monetary Authority (HKMA) will use the results of the review to assess financial institutions’ compliance, and to levy penalties should institutions break the rules.
They aim to find out whether intermediaries have been charging higher fees than they disclosed to clients to make trades on their behalf.
The review will begin in the second half of this year, the regulators said in a joint statement.
The SFC typically carries out such thematic reviews when it identifies trends, emerging risks or compliance lapses that it feels may require a regulatory response.
In 2018 it published a review of investment banks’ activities when sponsoring or leading IPOs, and last year banned UBS from sponsoring IPOs for 10 months and fined it and Wall Street rivals a combined $100 million for due diligence failings.
Reporting by Alun John; Editing by Catherine Evans