HSBC Securities fined $2 million for conflict-of-interest breaches
The Financial Industry Regulatory Authority (FINRA) has fined HSBC $2 million for violating FINRA rules regarding conflicts of interest and supervisory procedures.
Between January 2013 and December 2021, HSBC published more than 67,000 equity research reports within which were around 275,000 disclosure inaccuracies. These included failing to disclose the percentage of subject companies within each of the “buy,” “hold” and “sell” rating categories for which it provided investment banking services; failing to disclose whether the firm or its affiliates received compensation for investment banking services from a subject company; and failing to disclose whether the firm or its affiliates had received compensation for products or services other than investment banking services from a subject company.
Australian government consults on superannuation
The Australian government has issued a new consultation paper requesting input on implementing payday superannuation and a redesigned compliance framework to encourage employers to pay their super as close as possible to payday
The consultation paper provides an overview of the current Superannuation Guarantee contributions and administration framework (compulsory contributions by employers to their employees’ superannuation funds). This is followed by an introduction to the Government’s announcement at Budget to mandate payday super as part of the broader Securing Australians’ Superannuation package. This package forms the basis of what the Government is seeking to consult on, including:
- Defining payday super
- Updating the SG charge
- Compliance mechanisms
- Other areas for consultation
These areas for consultation lead into consultation questions, stakeholder answers to which will inform the design of payday super implementation and compliance frameworks.
The consultation closes on 3rd November.
A selected summary of key developments for regulated financial institutions
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