SEC Sanctions HSBC Securities
According to the SEC on March 17, the regulator has censured and fined HSBC Securities $725,000 over alleged failures in disclosure of conflicts of interest in its wrap program.
Between November 2015 and August 2017, HSBC allegedly misled its current and prospective advisory clients and didn’t disclose conflicts of interest related to how it compensated its dually registered investment advisor representatives in the firm’s retail banking and wealth management unit, according to the SEC.
HSBC allegedly stated in its Form ADV submissions as well as in its wrap fee program brochures that the representatives were compensated based on non-financial factors, according to the regulator.
HSBC allegedly did consider several financial factors in determining the representatives’ compensation, including how much clients paid in advisory fees for HSBC Spectrum and Managed Portfolio Account. Those two programs are reportedly available to retail advisory clients and they are charged quarterly advisory fees based on AUM and no commissions for activity in the accounts.
According to the SEC, HSBC also allegedly failed to implement written policies and procedures designed to prevent violations of the Investment Advisers Act of 1940’s provisions on representatives’ compensation.
This information is all publicly available and provided to you by The White Law Group. If you are concerned about your investments and would like a free consultation with a securities attorney, please call The White Law Group at 1-888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.
Tags: HSBC Securities censured, HSBC Securities complaints, HSBC Securities fined, HSBC Securities investigation, HSBC Securities lawsuit, HSBC Securities sanctions, HSBC Securities SEC Last modified: April 13, 2020