HKMA and SFC meet with Minibond investors / MAS in contact with FIs
The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) met yesterday with Lehman Minibond investors and representatives of the distributors who sold the first-to-default notes. The meeting followed street protests by HK investors on Sunday. The SFC has received over 800 enquiries and 150 complaints from investors, the bulk of which allege misselling.
The SFC and the HKMA are now set to conduct an investigation into the misselling allegations. Minibonds are legally structured as debentures and the issuer should have ensured that the disclosures were factually correct, not misleading and met the requirements of the Companies Ordinance. The SFC reviews the document so that on the basis of the facts provided by the issuer, these disclosure requirements are met.
“The SFC does not comment on the product itself, which is something that needs to be
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