Economy

HK watchdog fines Bank of America unit over sales

(Agencies)
Updated: 2011-05-12 15:54

HONG KONG - Hong Kong's securities watchdog said Thursday it fined a unit of Bank of America Corp 3 million Hong Kong dollars ($386,000) over the sales of some financial products to clients in 2007.

The Securities and Futures Commission said Thursday it also issued a reprimand to Merrill Lynch (Asia Pacific) Ltd. over the sales of the index-linked notes to 72 clients.

The SFC said an investigation found Merrill Lynch failed to "properly assess the financial situation and investment objectives" of 40 clients.

The watchdog was also concerned that key product information wasn't given to clients until after they had agreed to invest.

The company has agreed to buy back the notes from clients who still own them or make top-up payments to those who redeemed them for less than they invested. A total of $3.7 million will be spent on buying back the notes, which are structured investment products linked to Japanese stock indexes.

Merrill Lynch declined comment. It was bought by Bank of America in 2009.