Finance
Hong Kong regulator fines UBS $1 million over investor classification errors
Published by Global Banking & Finance Review®
Posted on October 20, 2025
1 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 20, 2025
1 min readLast updated: January 21, 2026
UBS fined $1 million by Hong Kong's SFC for misclassifying client investor status over 12 years, amid increased regulatory scrutiny.
HONG KONG (Reuters) -Hong Kong's Security Regulator (SFC) said on Monday that it had reprimanded Swiss bank UBS AG and fined it HK$8 million ($1.03 million) for misclassifying its clients' professional investor status for more than 12 years.
A total of 560 joint accounts booked or managed in Hong Kong by the bank were misclassified, the regulator said.
In August 2021, the SFC reprimanded and fined UBS HK$9.8 million for various regulatory breaches, including failures of a similar nature, according to SFC.
UBS declined to comment.
The Hong Kong securities watchdog has since August stepped up scrutiny over banks' regulatory breaches, dishing out fines of HK$4.2 million to HSBC and HK$23.8 million to Deutsche Bank, respectively.
($1 = 7.7675 Hong Kong dollars)
(Reporting by Farah Master and Selena Li in Hong Kong and the Beijing newsroom; Editing by Toby Chopra and Louise Heavens)
Client misclassification occurs when a financial institution incorrectly categorizes a client, which can lead to inappropriate investment advice or regulatory penalties.
Increased scrutiny refers to heightened examination and oversight of financial institutions by regulators to ensure compliance with laws and regulations.
A professional investor is an individual or entity that meets specific criteria set by regulators, allowing them access to investment opportunities not available to retail investors.
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