0EOPLE
&-ARKETS
HSBC fined over Hong Kong bond sales
(ONGû+ONGSûSECURITIESûREGULATORûHASûlNEDû
HSBCû(+Mû53M ûFORûhSYSTEMICû
DElCIENCIESvûINûITSûBONDûSELLINGûPRACTICESûINû
AûRAREûENFORCEMENTûACTIONûINVOLVINGûDEBTû
INVESTMENTS
4HEû3ECURITIESûANDû&UTURESû#OMMISSIONû
SAIDûLASTûWEEKûTHATû(3"#û"ROKINGû3ECURITIESû
!SIA ûAûUNITûSERVICINGûNON
INSTITUTIONALû
CLIENTS ûFAILEDûTOûCONDUCTûPROPERûDUEû
DILIGENCEûONûINDIVIDUALûBONDSûBEFOREûMAKINGû
recommendations to clients.
)TûSAIDûTHEûBANKûDIDûNOTûHAVEûANûEFFECTIVEû
SYSTEMûINûPLACEûTOûASSESSûITSûCLIENTSûRISKûPROlLES û
DIDûNOTûPROVIDEûADEQUATEûPRODUCTûINFORMATIONû
TOûITSûSALESûSTAFF ûANDûFAILEDûTOûPROPERLYûRECORDû
INVESTMENTûADVICEûGIVENûTOûCLIENTS
)TSûlNDINGSûCOVEREDûûBONDûTRANSACTIONSû
BETWEENû!PRILûûANDû-ARCHû ûûOFû
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AVAILABLEûONLYûTOûPROFESSIONALûINVESTORS û
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regulator is only interested in protecting
ORDINARYûRETAILûINVESTORS
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3ûHASûTAKENûAGAINSTûAûMAJORûBANKûOVERûTHEû
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RECENTûHISTORY vûSAIDûONEûSOURCE
h#OULDûTHISûPRINCIPLEûAPPLYûTOûBONDûDEALSû
DISTRIBUTEDûEXCLUSIVELYûTOûINSTITUTIONALû
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CORPORATIONSûOVERûTHEIRûHANDLINGûOFû#HAPTERûû
BONDSûINûPARTICULARûTHEIRûFAILUREûTOûBRIEFûCLIENTSû
properly around the risks associated with these
PRODUCTSûSUCHûASûLACKûOFûLIQUIDITY
*ONATHANû#ROMPTONûAû(ONGû+ONG
BASEDû
PARTNERûATûLAWûlRMû20#ûSAIDûTHEûlNEûWASû
RELATIVELYûLOWûIFûTHEû3ûWASûTRYINGûTOûSENDûAû
hSTRONGûMESSAGEvûTOûTHEûMARKET
“This is generally in line with other
STANDARDûlNESûIMPOSEDûBYûTHEû3ûRECENTLYû
/NûAûGLOBALûSCALEû53MûISNTûLARGEû
ESPECIALLYûAFTERû3&!4ûTHEûAPPEALSûTRIBUNAL û
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-ANULIFEû!SSETû-ANAGEMENTûRECEIVEDûAû
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SIMILARûDElCIENCIESûINûGAUGINGûPRODUCTûANDû
CLIENTûSUITABILITYûCOMESûlVEûYEARSûLATERûANDû
AFTERûSEVERALûWARNINGS
h4HEûREALûCONCERNûISûTHATûTHEû3ûISû
INADVERTENTLYûSENDINGûAûMESSAGEûTHATûIFûYOUû
BREACHûYOURûSUITABILITYûOBLIGATIONSûBUTûAREû
only dealing with sophisticated market
COUNTERPARTIESûTHEYûMAYûBEûMOREûLENIENTvû
SAIDû#ROMPTON
)Nû.OVEMBERûTHEû3ECURITIESûANDû&UTURESû
!PPEALû4RIBUNALûIMPOSEDûAûRECORDû(+Mû
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OVERûTHEûSALEûOFû,EHMANû"ROTHERS
LINKEDû
STRUCTUREDûlNANCIALûPRODUCTS
4HEû3ûHADûORIGINALLYûPROPOSEDûAûPENALTYû
OFû(+MûAFTERûSOMEû(3"#ûPRIVATEû
banking clients complained of losses arising
from the purchase of those products.
)Nû*ANUARYûTHISûYEARûTHEû3ûISSUEDûAû
circular warning licensed corporations of
compliance failures related to the
DISTRIBUTIONûOFûCOMPLEXûBONDSûANDû
structured products.
Thomas Blott
Citi shuffles Asia levfin team
CITIGROUP has announced changes to its loan
ANDûACQUISITIONûlNANCEûTEAMûINû!SIA
0ACIlC û
including the hires in Australia of Alok
Jhingan and Simon Marrison.
HINGANûJOINSûASûDIRECTORûANDûCO
HEADûOFû
THEû!USTRALIAûANDû.EWû:EALANDûACQUISITIONû
ANDûSYNDICATEDûlNANCEûTEAMûWITHû
RESPONSIBILITYûFORûlNANCIALûSPONSORSû
COVERAGEû(EûWILLûWORKûALONGSIDEû,ACHLANû
4RACEY ûWHOûCOVERSûCORPORATES
HINGANûWILLûALSOûWORKûCLOSELYûWITHû$RAGIû
2ISTEVSKI ûHEADûOFûlNANCIALûSPONSORSûû
INDUSTRIALS ûANDû-ARRISON ûWHOûWASûRECENTLYû
HIREDûINû2ISTEVSKISûTEAMûASûDIRECTOR
HINGANûANDû-ARRISONûPREVIOUSLYûWORKEDûATû
Deutsche Bank in Sydney for nearly 12 years.
HINGANûWASûHEADûOFûLEVERAGEDûANDûACQUISITIONû
lNANCE ûWHILEû-ARRISONûWASûAûVICE
PRESIDENTûWITHû
RESPONSIBILITYûFORûlNANCIALûSPONSORSûCOVERAGE
HINGANûANDû4RACEYûREPORTûTOûOHNû
-C,EAN ûHEADûOFûCAPITALûMARKETSûORIGINATION û
!USTRALIAûANDû.EWû:EALAND ûANDû"ENJAMINû
.G ûHEADûOFûDEBTûSYNDICATEûANDûACQUISITIONû
lNANCING û!SIA
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Vivi Basilakis ûAûDIRECTORûINû#ITIGROUPSû
LEVERAGEDûANDûACQUISITIONûlNANCEûTEAMûINû
!USTRALIAûHASûLEFTûTHEûBANKû3HEûJOINEDûINû
2011 after a four-year stint as senior
MANAGERûINû!.:SûLEVERAGEDûANDûACQUISITIONû
lNANCEûTEAMûINû3YDNEY
ALL CHANGE
%LSEWHEREûINû(ONGû+ONGûAsghar Ali will lead
ALLûTRANSACTIONSûFORûlNANCIALûSPONSORû
lNANCINGûCOVERAGEûFORûTHEûREGIONûANDûWORKû
closely with loan transactors responsible for
INDIVIDUALûGEOGRAPHIES
(EûWILLûALSOûWORKûWITHûTHEûBANKSûGLOBALû
ASSETûMANAGERSûGROUPûTOûORIGINATEûSTRUCTUREû
ANDûEXECUTEûDEALSûWHILEûCONTINUINGûTOû
OVERSEEûLOANûORIGINATIONûFORûTHEû!SSOCIATIONû
OFû3OUTH
%ASTû!SIANû.ATIONSûREGIONûANDû)NDIA
4HEûGEOGRAPHICALûCOVERAGEûISûSPLITû
between members of the team with Vincent
YeungûRESPONSIBLEûFORû#HINAûANDû4AIWANû
Esmond TamûHANDLINGû(ONGû+ONGû3OUTHû
+OREAûANDû3OUTH
%ASTû!SIAûEX
6IETNAM ûANDû
Chiranjeev KumarûTAKINGûCAREûOFû)NDIAû
"ANGLADESHû3RIû,ANKAûANDû6IETNAM
4HEûFOURûWILLûCONTINUEûTOûREPORTûTOû.Gû
HEADûOFûDEBTûSYNDICATEûANDûACQUISITIONû
lNANCINGû!SIA
0ACIlC
The US bank has also appointed Prosenjit
Saha as head of loan sales for South and
3OUTH
%ASTû!SIAû3AHAûWILLûOVERSEEûLOANû
SALESûINûTHEû!SSOCIATIONûOFû3OUTH
%ASTû!SIANû
Nations region and India while keeping his
EXISTINGûRESPONSIBILITIESûOFûDISTRIBUTINGû
STRUCTUREDûLEVERAGEDûANDûCOMPLEXû
lNANCINGSûFORûTHEûBANKSûCAPITALûMARKETSû
ORIGINATIONûUNITûINû!SIA
0ACIlC
He will manage two bankers with
DISTRIBUTIONûRESPONSIBILITIESûnû+ELVINû
,IMûWHOûISûBASEDûINû3INGAPOREûANDû
another person to be appointed in
India shortly.
Saha will also continue to handle
#ITIGROUPSûSECONDARYûLOANûANDûTRADINGû
BUSINESSûINû!SIA
0ACIlCû"ASEDûINû(ONGû
+ONGû3AHAûWILLûREPORTûTOû.G
Saha joined the US bank in India in 2000
ANDûHASûWORKEDûINûTHEû#-/ûUNITûSINCEû
û)Nû*ANUARYûûHEûMOVEDûTOû(ONGû
+ONGûTOûHANDLEûLOANSûORIGINATIONûFORû
3OUTH
%ASTû!SIAû)Nû!PRILûûHEûJOINEDû
THEûLOANûSYNDICATEûANDûSALESûTEAMûCOVERINGû
4HAILANDû-ALAYSIAûANDû)NDIA
Prakash Chakravarti