Interactive Brokers Hong Kong fined for regulatory breaches

The Securities and Futures Commission (SFC) has fined Interactive Brokers Hong Kong (IBHK) HKD4.2m (USD537,000) for breaches related to client asset handling. An investigation found that from December 2017 to October 2020, IBHK loaned securities of 7,911 clients based on expired standing authorities, due to a programming error that prevented renewal notices from being sent. The failures breached the Securities and Futures (Client Securities) Rules and the Code of Conduct, the SFC said. While no client losses were identified, the regulator considered IBHK’s self-reporting and remedial actions when determining the penalty. IBHK cooperated with the investigation, the SFC added.