The Securities and Futures Commission of Hong Kong reprimanded and fined EFG Bank AG's Hong Kong Branch HK$10,850,000 for a range of regulatory failures, following a self-report by EFG and a referral of findings from the Hong Kong Monetary Authority. The action, announced on 11 December 2025, follows an investigation into the branch's conduct across the period from January 2015 to December 2020.
The failures identified by the two regulators fell into three distinct categories: shortcomings in product due diligence, deficiencies in record-keeping practices, and instances of late reporting to the relevant authorities.
PRODUCT DUE DILIGENCE AND RECORD-KEEPING
EFG Bank AG's Hong Kong Branch was found to have fallen short of expectations across both dimensions.
In setting the HK$10,850,000 fine, the SFC said it took into account all relevant circumstances.
JOINT HKMA-SFC ACTION The press release was issued jointly by the SFC and the HKMA, which referred its findings to the SFC after investigating EFG's self-report on its product due diligence failures.
EFG Bank AG is a Swiss private bank. In setting the penalty, the SFC took into account EFG's remedial measures to enhance its product due diligence framework, its cooperation with the HKMA and the SFC, and its undertaking to implement Enhanced Complaint Handling Procedures to review complaints from customers who acquired the affected products.