SFC may use stick to force banks into minibond setttlements

The Securities and Futures Commission may disqualify banks from selling securities products if they are not willing to follow the example set by Sun Hung Kai Investment Services over the minibonds saga, sources said.

The company agreed late last month to refund up to HK$85 million to investors who bought structured notes linked to collapsed US investment bank Lehman Brothers.

The regulator will first deal with big banks, the sources said.

The SFC is now liaising with banks to try to get them to settle with minibond investors by using the Sun Hung Kai Investment deal as a reference and may resort to disciplinary action, the sources said.

Source