Compliance Radar
Who was sanctioned, and for what?
Fines, court rulings and incidents from Europe, North America, Latin America, Asia-Pacific and Middle East: 1,907 cases from 40 jurisdictions, each with an official source and checked against that source before publication. Filter by country, area of law and sector. Click a chart to drill down one level.
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Where?
by authority- Securities and Futures Commission (SFC) €12.4m 72 % · 7 cases
- Securities and Futures Commission (SFC), Hongkong €4.73m 28 % · 6 cases
What for?
by topicWho?
by sectorAll sectors
When?
per quarter, by date of decision| Period | Cases | Total |
|---|---|---|
| Q4 2023 | 0 | – |
| Q1 2024 | 0 | – |
| Q2 2024 | 0 | – |
| Q3 2024 | 0 | – |
| Q4 2024 | 0 | – |
| Q1 2025 | 1 | €8.1m |
| Q2 2025 | 1 | €476,704 |
| Q3 2025 | 3 | €3.95m |
| Q4 2025 | 3 | €2.17m |
| Q1 2026 | 2 | €1.41m |
| Q2 2026 | 1 | – |
| Q3 2026 | 2 | €1.07m |
| Q4 2026 | 0 | – |
13 cases
27 Jul 2026 China Industrial Securities International Asset Management LimitedSFC: HKD 6.8m fine for CISIAM over missed red flags in a private fund €761,367
The SFC publicly reprimanded China Industrial Securities International Asset Management (CISIAM) and fined it HKD 6.8 million because, between August 2019 and September 2020, the manager of a private fund set up for the insurer Tahoe Life acquired complex structures with notes linked to bonds of a related company at the request of the insurer's chief investment officer, without identifying and properly examining the red flags. CISIAM also failed to observe the fund's investment restrictions and objectives and did not manage its risks effectively. In setting the penalty, the SFC also took into account management fees of around HKD 1.9 million received from the fund.
A fund manager must independently assess an investor's instructions and must not implement unusually complex structures without a clear commercial rationale unchecked.
Recognising red flags in investor-driven fund arrangements
Missing or inadequate training played a role in the decision.
- Authority / court
- Securities and Futures Commission (SFC), Hongkong
- Area of law
- Capital markets and financial supervision · Organisational requirements
- Legal basis
- Section 194 Securities and Futures Ordinance (Cap. 571); General Principle 2 Code of Conduct; Paragraphen 1.2(d), 3.1 und 3.11.1 Fund Manager Code of Conduct; Abschnitt VIII Management, Supervision and Internal Control Guidelines
- Action
- Fine
- Status of proceedings
- unknown
- Sector
- Financial services and insurance
- Repeat case
- no
- Mitigating circumstances
- Remedial measures (new policies on risk management and dubious investment arrangements, compliance training), cooperation with the SFC and an otherwise clean disciplinary record.
- Published
- 27 Jul 2026
Original amount 6,800,000 HKD, converted at the ECB reference rate of 27 Jul 2026.
- SFC reprimands and fines China Industrial Securities International Asset Management Limited $6.8 million (26PR116) Press release of an authority
- Statement of Disciplinary Action – China Industrial Securities International Asset Management Limited Decision of an authority
Checked against the official source on 3 Oct 2026 · Direct link
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27 Jul 2026 Bright Smart Securities International (H.K.) LimitedBright Smart Securities: HKD 2.8m fine for inadequate wash-trade controls €313,504
Bright Smart Securities International (H.K.) was publicly reprimanded and fined 2,800,000 HKD because between November 2023 and September 2025 its controls did not prevent 615 clients from executing 1,021 pairs of wash trades (trades without a change in beneficial ownership) in 736 shares and warrants. Monitoring was mostly after the event and manual, and several wash trades by one client on the same day counted as a single occurrence. Similar deficiencies had been identified and raised repeatedly before but were not fully remedied in any instance.
Trade surveillance must intercept wash trades automatically before execution; after-the-event manual reviews are not enough for recurring patterns.
Detecting and preventing wash trades
- Authority / court
- Securities and Futures Commission (SFC)
- Area of law
- Capital markets and financial supervision · Market abuse and insider dealing
- Legal basis
- s. 194 SFO (Cap. 571); Code of Conduct GP 2, para. 4.3
- Action
- Fine
- Status of proceedings
- final
- Sector
- Financial services and insurance
- Mitigating circumstances
- Enhanced systems and a commitment to an independent effectiveness review, cooperation.
- Published
- 27 Jul 2026
Original amount 2,800,000 HKD, converted at the ECB reference rate of 27 Jul 2026.
- SFC press release 26PR117: SFC reprimands and fines Bright Smart Securities International (H.K.) Limited $2.8 million (27.07.2026) Press release of an authority
- SFC Statement of Disciplinary Action zu 26PR117 Decision of an authority
Checked against the official source on 3 Oct 2026 · Direct link
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23 Apr 2026 PricewaterhouseCoopers Hong KongPwC Hong Kong: HKD 1bn compensation for Evergrande shareholders under SFC agreement Other
Under an agreement with the Securities and Futures Commission (SFC, Hong Kong's securities regulator), PricewaterhouseCoopers Hong Kong has undertaken to set aside 1,000,000,000 HKD to compensate independent minority shareholders of China Evergrande Group; in return the regulator will take no further action, without any admission of liability. China Evergrande's audited revenue was allegedly overstated by 44.79% for 2019 and 69.03% for 2020, and PwC Hong Kong, as auditor, was allegedly concerned in the dissemination of false information, allegedly did not maintain its independence and allegedly acquiesced in management's manipulation of audit samples and site inspections.
Auditors who tolerate manipulation of their audit procedures face a considerable risk of having to compensate investors.
Independence and professional scepticism in auditing
- Authority / court
- Securities and Futures Commission (SFC)
- Area of law
- Capital markets and financial supervision · Market abuse and insider dealing
- Legal basis
- s. 277 SFO (Cap. 571) (Auffassung der SFC, von PwC HK nicht anerkannt)
- Action
- Other
- Status of proceedings
- final
- Sector
- Other
- Published
- 23 Apr 2026
Checked against the official source on 3 Oct 2026 · Direct link
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9 Feb 2026 Kylin International (HK) Co., LimitedSFC: HKD 9m fine for Kylin International over fund management failures €968,909
The SFC publicly reprimanded Kylin International (HK) and fined it HKD 9 million for failures as investment manager or consultant of six sub-funds of a Cayman Islands fund from August 2018. The SFC found that conflicts of interest arising from six loans by the firm or a director to four sub-funds were neither managed nor disclosed, reconciliations, valuations and audits were missing, investors were wrongly told that the suitability requirement did not apply, KYC and suitability controls were inadequate and anti-money laundering records were missing. The firm ceased its regulated activities at the end of 2023; its licence was revoked at its request in January 2025.
Loans from a manager or its senior management to funds under management are a conflict of interest that must be managed and disclosed to investors.
Conflicts of interest and investor information in private fund management
- Authority / court
- Securities and Futures Commission (SFC), Hongkong
- Area of law
- Capital markets and financial supervision · Organisational requirements
- Legal basis
- Section 194 Securities and Futures Ordinance (Cap. 571)
- Action
- Fine
- Status of proceedings
- unknown
- Sector
- Financial services and insurance
- Repeat case
- no
- Mitigating circumstances
- Remedial measures after an SFC review in late 2020, cessation of regulated activities and an otherwise clean disciplinary record.
- Liability of senior managers
- Measures against individuals are not set out here.
- Published
- 9 Feb 2026
Original amount 9,000,000 HKD, converted at the ECB reference rate of 9 Feb 2026.
- SFC reprimands and fines Kylin International (HK) Co., Limited $9 million for fund management failures (26PR19) Press release of an authority
- Statement of Disciplinary Action – Kylin International (HK) Co., Limited Decision of an authority
Checked against the official source on 3 Oct 2026 · Direct link
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6 Jan 2026 Saxo Capital Markets HK LimitedSaxo Capital Markets HK: HKD 4m fine over crypto products sold to retail clients €438,731
Saxo Capital Markets HK was publicly reprimanded and fined 4,000,000 HKD because between November 2018 and November 2022 retail clients, too, could trade on its online trading platform 32 complex virtual asset-related products which under the regulators' circulars were reserved for professional investors (1,446 transactions by 130 retail clients and six professional investors). The firm neither assessed clients' knowledge nor provided sufficient information and warnings; the detection rules adopted from its parent group had not identified the products as crypto-related.
Group-wide product filters do not replace a firm's own local product due diligence, especially for crypto products subject to distribution restrictions.
Distribution of complex crypto products via online platforms
- Authority / court
- Securities and Futures Commission (SFC)
- Area of law
- Capital markets and financial supervision · Organisational requirements
- Legal basis
- s. 194 SFO (Cap. 571); Code of Conduct; Guidelines on Online Distribution and Advisory Platforms; SFC-Rundschreiben vom 01.11.2018 und HKMA/SFC-Rundschreiben vom 28.01.2022
- Action
- Fine
- Status of proceedings
- final
- Sector
- Financial services and insurance
- Repeat case
- no
- Mitigating circumstances
- Self-report, voluntary compensation of clients, cessation of regulated activities, cooperation and acceptance of the findings, otherwise clean disciplinary record.
- Published
- 6 Jan 2026
Original amount 4,000,000 HKD, converted at the ECB reference rate of 6 Jan 2026.
- SFC press release 26PR1: SFC reprimands and fines Saxo Capital Markets HK Limited $4 million (06.01.2026) Press release of an authority
- SFC Statement of Disciplinary Action zu 26PR1 Decision of an authority
Checked against the official source on 3 Oct 2026 · Direct link
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11 Dec 2025 EFG Bank AGSFC: reprimand and HKD 10.85m fine for EFG Bank over deficient product due diligence €1.19m
The SFC publicly reprimanded EFG Bank AG and fined it HKD 10,850,000 because, between January 2015 and December 2020, the bank failed to take special product features into account in its due diligence on 322 bonds, updated its policies late after the complex product regime took effect and in some cases served customers without the required information and warning statements. In addition, due diligence records were missing for 141 bonds, and the bank did not report the failures to the SFC immediately. The bank will apply an enhanced complaint handling procedure for customers who acquired one of 351 potentially affected products.
Firms distributing complex products must document their product due diligence in full, update policies immediately when rules change and report identified failures to the regulator without delay.
Product due diligence and customer information when distributing complex investment products
- Authority / court
- Securities and Futures Commission (SFC), Hongkong
- Area of law
- Capital markets and financial supervision · Organisational requirements
- Legal basis
- Section 196 Securities and Futures Ordinance (Cap. 571); Code of Conduct for Persons Licensed by or Registered with the SFC; Management, Supervision and Internal Control Guidelines
- Action
- Fine
- Status of proceedings
- unknown
- Sector
- Financial services and insurance
- Mitigating circumstances
- Remedial measures on product due diligence, cooperation with the HKMA and the SFC, and commitment to an enhanced complaint handling procedure for affected customers.
- Published
- 11 Dec 2025
Original amount 10,850,000 HKD, converted at the ECB reference rate of 11 Dec 2025.
- SFC reprimands and fines EFG Bank AG $10.85 million for regulatory breaches and internal control failures (25PR205) Press release of an authority
- Statement of Disciplinary Action – EFG Bank AG Decision of an authority
Checked against the official source on 3 Oct 2026 · Direct link
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13 Nov 2025 Tung Tai Securities Company LimitedTung Tai Securities: HKD 900,000 fine after fraud via spoofed email instructions €99,681
Tung Tai Securities was reprimanded and fined 900,000 HKD because between September 2019 and February 2020, acting on instructions from a bogus email address resembling the genuine one, it sold an overseas client's shares and transferred the proceeds of 3,301,740 USD to three overseas bank accounts not designated by the client. Red flags such as transfers rejected by several banks were ignored, and effective controls to protect client assets from theft and fraud were lacking.
Sale and payment instructions received by email must be confirmed through an independent, pre-registered channel, especially for transfers to new beneficiary accounts.
Fraud using spoofed email instructions (business email compromise)
- Authority / court
- Securities and Futures Commission (SFC)
- Area of law
- Capital markets and financial supervision · Organisational requirements
- Legal basis
- s. 194 SFO (Cap. 571); Code of Conduct GP 2, GP 3, GP 8, paras. 4.3, 11.1(a); Management, Supervision and Internal Control Guidelines Part VII
- Action
- Fine
- Status of proceedings
- final
- Sector
- Financial services and insurance
- Repeat case
- no
- Mitigating circumstances
- Compensation of the client, improved order-handling and execution procedures, independent review of controls, cooperation, otherwise clean disciplinary record.
- Published
- 13 Nov 2025
Original amount 900,000 HKD, converted at the ECB reference rate of 13 Nov 2025.
- SFC press release 25PR192: SFC reprimands and fines Tung Tai Securities Company Limited HK$900,000 (13.11.2025) Press release of an authority
- SFC Statement of Disciplinary Action zu 25PR192 Decision of an authority
Checked against the official source on 3 Oct 2026 · Direct link
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20 Oct 2025 UBS AGUBS: HKD 8m fine for years of misclassifying professional investors €883,431
UBS AG was publicly reprimanded and fined 8,000,000 HKD in Hong Kong because, from 2009 to July 2022, its automated process for classifying professional investors rested on a misinterpretation of the minimum portfolio requirement for certain joint accounts. From July 2018 to July 2022 alone, 560 joint accounts were misclassified; securities of 23 of these accounts were lent in 9,190 lending transactions without valid authority, and 94 accounts carried out 500 transactions in products reserved for professional investors. In August 2021 the regulator had already fined UBS 9.8 million HKD, among other things for similar failings.
Automated client classifications must be validated against the wording of the rules, especially for special cases such as joint accounts.
Correct classification of professional investors and distribution restrictions
- Authority / court
- Securities and Futures Commission (SFC)
- Area of law
- Capital markets and financial supervision · Organisational requirements
- Legal basis
- s. 196 SFO (Cap. 571); s. 4 Securities and Futures (Client Securities) Rules; s. 11(3A) Securities and Futures (Contract Notes, Statements of Account and Receipts) Rules; Securities and Futures (Professional Investor) Rules; Code of Conduct
- Action
- Fine
- Status of proceedings
- final
- Sector
- Financial services and insurance
- Employees
- 10,000 or more
- Repeat case
- yes
- Mitigating circumstances
- Look-back review and remediation after self-reporting, cooperation, commitment to an enhanced complaint handling procedure for potentially misclassified clients.
- Published
- 20 Oct 2025
Original amount 8,000,000 HKD, converted at the ECB reference rate of 20 Oct 2025.
- SFC press release 25PR167: SFC reprimands and fines UBS AG $8 million for professional investor misclassification (20.10.2025) Press release of an authority
- SFC Statement of Disciplinary Action zu 25PR167 Decision of an authority
Checked against the official source on 3 Oct 2026 · Direct link
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8 Sep 2025 Instinet Pacific LimitedSFC: HKD 8m fine for Instinet Pacific over unreported cross trades €875,254
The SFC publicly reprimanded Instinet Pacific and fined it HKD 8 million because, between December 2012 and March 2018, the broker failed to report 8,817 pairs of cross trades between clients and an affiliated company, worth around HKD 25.9 billion, to the Stock Exchange of Hong Kong as required by Rule 526 of the Exchange Rules. There were neither internal rules on reporting such trades nor any review of the reporting process.
Every reporting obligation towards an exchange or regulator needs written ownership and regular checks that reports are actually being made.
Reporting obligations towards the exchange in securities trading
- Authority / court
- Securities and Futures Commission (SFC), Hongkong
- Area of law
- Capital markets and financial supervision · Disclosure and reporting obligations
- Legal basis
- Section 194 Securities and Futures Ordinance (Cap. 571); Rule 526 Rules of the Exchange (SEHK); General Principles 2 und 7 sowie Paragraph 12.1 Code of Conduct
- Action
- Fine
- Status of proceedings
- unknown
- Sector
- Financial services and insurance
- Mitigating circumstances
- The firm ceased the relevant trade flows on its own initiative and cooperated with the SFC.
- Published
- 8 Sep 2025
Original amount 8,000,000 HKD, converted at the ECB reference rate of 8 Sep 2025.
- SFC reprimands and fines Instinet Pacific Limited $8 million for failure to report cross trades to the Stock Exchange (25PR140) Press release of an authority
- Statement of Disciplinary Action – Instinet Pacific Limited Decision of an authority
Checked against the official source on 3 Oct 2026 · Direct link
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28 Aug 2025 Deutsche Bank AktiengesellschaftDeutsche Bank: HKD 23.8m fine in Hong Kong over fee and disclosure errors €2.62m
Deutsche Bank AG was publicly reprimanded and fined 23,800,000 HKD in Hong Kong. Clients were overcharged fees of about 5 million USD in management fees on 39 accounts, 10,988 EUR at 92 customers and 493 USD at 32 customers, because agreed discounts were not applied, floating rate debt instruments were wrongly valued and fund prices were not updated. 261 single stock and 1,590 industry research reports lacked disclosure of investment banking relationships. 40 ETFs were given too low a product risk rating. The proceedings stemmed from the bank's self-reports.
Agreed fee discounts, valuation data from external vendors and disclosures in research reports need regular reconciliation so that system errors do not persist for years.
Fee billing, valuation data and disclosure in research reports
- Authority / court
- Securities and Futures Commission (SFC)
- Area of law
- Capital markets and financial supervision · Organisational requirements
- Legal basis
- s. 196 SFO (Cap. 571); Code of Conduct GP 2, GP 7, paras. 2.1, 12.1, 16.5(d)
- Action
- Fine
- Status of proceedings
- final
- Sector
- Financial services and insurance
- Employees
- 10,000 or more
- Culpability
- negligent
- Mitigating circumstances
- Self-reports, root-cause analysis, remediation and stronger controls, refund of overcharged fees, breaches found by the regulator to be inadvertent and without intent, cooperation and acceptance of the findings.
- Published
- 28 Aug 2025
Original amount 23,800,000 HKD, converted at the ECB reference rate of 28 Aug 2025.
- SFC press release 25PR132: SFC reprimands and fines Deutsche Bank Aktiengesellschaft $23.8 million (28.08.2025) Press release of an authority
- SFC Statement of Disciplinary Action zu 25PR132 Decision of an authority
Checked against the official source on 3 Oct 2026 · Direct link
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26 Aug 2025 The Hongkong and Shanghai Banking Corporation LimitedSFC: HKD 4.2m fine for HSBC over faulty disclosures in research reports €461,939
The SFC publicly reprimanded The Hongkong and Shanghai Banking Corporation (HSBC) and fined it HKD 4.2 million because, between 2013 and 2021, the bank failed to disclose, or disclosed incorrectly, its investment banking relationships with the companies covered in research reports on Hong Kong-listed securities. The cause was deficiencies in recording and mapping data across systems; an estimated more than 4,200 reports were affected. Following a self-report, the HKMA investigated jointly with the SFC.
Mandatory conflict-of-interest disclosures in research reports are only as reliable as the underlying reference data, whose reconciliation across systems must be checked regularly.
Disclosure of conflicts of interest in investment research
- Authority / court
- Securities and Futures Commission (SFC), Hongkong
- Area of law
- Capital markets and financial supervision · Disclosure and reporting obligations
- Legal basis
- Section 196 Securities and Futures Ordinance (Cap. 571); Paragraph 16.5(d), General Principles 2, 3 und 7 sowie Paragraph 12.1 Code of Conduct
- Action
- Fine
- Status of proceedings
- unknown
- Sector
- Financial services and insurance
- Employees
- 10,000 or more
- Mitigating circumstances
- No evidence of client losses, root-cause review, enhancement of systems and controls, and cooperation with the HKMA and the SFC.
- Published
- 26 Aug 2025
Original amount 4,200,000 HKD, converted at the ECB reference rate of 26 Aug 2025.
- SFC reprimands and fines HSBC $4.2 million for disclosure failures in research reports (25PR129) Press release of an authority
- Statement of Disciplinary Action – The Hongkong and Shanghai Banking Corporation Limited Decision of an authority
Checked against the official source on 3 Oct 2026 · Direct link
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28 Apr 2025 Interactive Brokers Hong Kong LimitedSFC: HKD 4.2m fine for Interactive Brokers HK over securities lending without authority €476,704
The SFC publicly reprimanded Interactive Brokers Hong Kong and fined it HKD 4.2 million because, between December 2017 and October 2020, the broker lent securities listed on the Hong Kong stock exchange belonging to 7,911 clients on the basis of expired standing authorities. Owing to a programming error, the renewal notices had not been sent. This breached the Securities and Futures (Client Securities) Rules and the Code of Conduct.
Automated processes for client authorities need independent checks that deadlines and renewals are actually met.
Handling client securities and expiry of client authorities
- Authority / court
- Securities and Futures Commission (SFC), Hongkong
- Area of law
- Capital markets and financial supervision · Organisational requirements
- Legal basis
- Section 194 Securities and Futures Ordinance (Cap. 571); Sections 7 und 10 Securities and Futures (Client Securities) Rules; General Principles 7 und 8, Paragraphen 11.1(a) und 12.1 Code of Conduct
- Action
- Fine
- Status of proceedings
- unknown
- Sector
- Financial services and insurance
- Culpability
- negligent
- Mitigating circumstances
- Self-report and remedial action, conduct not deliberate, no evidence of client loss, cooperation and acceptance of the findings.
- Published
- 28 Apr 2025
Original amount 4,200,000 HKD, converted at the ECB reference rate of 28 Apr 2025.
- SFC reprimands and fines Interactive Brokers Hong Kong Limited $4.2 million for regulatory breaches (25PR57) Press release of an authority
- Statement of Disciplinary Action – Interactive Brokers Hong Kong Limited Decision of an authority
Checked against the official source on 3 Oct 2026 · Direct link
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27 Jan 2025 Hang Seng Bank LimitedHang Seng Bank: HKD 66.4m fine over selling practices and excessive charges €8.1m
Hang Seng Bank was publicly reprimanded and fined 66,400,000 HKD. Relationship managers had induced 46 clients, whose fund transactions in 2016/2017 were recorded as their own choice, to trade excessively often with short holding periods; between 2014 and 2018, 388 clients without established knowledge of derivatives bought derivative funds in 629 transactions; and between 2014 and 2023 the bank improperly retained benefits, overcharged fees and inadequately disclosed trailer fees (at least 22.4 million HKD). The bank has compensated affected clients and refunded the amounts overcharged.
Client transactions flagged as the client's own choice and fee billing need independent control, otherwise mis-selling and overcharging go undetected for years.
Investment advice: suitability, excessive trading and fee transparency
- Authority / court
- Securities and Futures Commission (SFC)
- Area of law
- Capital markets and financial supervision · Organisational requirements
- Legal basis
- s. 196 SFO (Cap. 571); Code of Conduct for Persons Licensed by or Registered with the SFC
- Action
- Fine
- Status of proceedings
- final
- Sector
- Financial services and insurance
- Repeat case
- no
- Mitigating circumstances
- Compensation of clients and refund of benefits, internal and independent reviews after self-reporting, cooperation with the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) and acceptance of the findings, no previous disciplinary record.
- Published
- 27 Jan 2025
Original amount 66,400,000 HKD, converted at the ECB reference rate of 27 Jan 2025.
- SFC press release 25PR14: SFC reprimands and fines Hang Seng Bank Limited $66.4 million (27.01.2025) Press release of an authority
- SFC Statement of Disciplinary Action zu 25PR14 Decision of an authority
Checked against the official source on 3 Oct 2026 · Direct link