Hong Kong Watchdog Fines UBS HKD8m for Investor Misclassification

UBS Hong Kong fine of HKD8m (USD1.03m) has been imposed by the Securities and Futures Commission (SFC) after the bank misclassified clients as professional investors for over 12 years. The SFC said the issue stemmed from an automated process that misread minimum portfolio thresholds for joint accounts, allowing UBS to sell products intended only for professionals and offer securities pooled lending without valid authorities. A review covering July 2018 to July 2022 found 560 affected joint accounts, though the error dated back to 2009. The regulator said the case underscores the need for tighter client classification and controls. UBS has faced multiple enforcement actions as Hong Kong strengthens oversight of banking compliance.