Merrill Lynch fined by SFC for mis-selling ILNs
The Hong Kong Securities and Futures Commission has fined and censured Merrill Lynch (Asia Pacific) for mis-selling index-linked notes to investors. The US bank will pay a fine of HK$3 million and repurchase notes held by private investors to the tune of HK$28.7 million.
The Securities and Futures Commission (SFC) has reprimanded Merrill Lynch and fined it HK$3 million ($385,000) for inadequate systems in relation to the sale of two index-linked notes (ILNs) issued to 72 clients in 2007.
An SFC investigation found that Merrill Lynch had failed to properly assess the financial situation and investment objectives of more than 40 of the 72 high-net-worth customers who invested in the index-linked notes during 2007. The products were five-year callable notes linked
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