11th December 2025 – (Hong Kong) The Securities and Futures Commission (SFC), in a joint action with the Hong Kong Monetary Authority (HKMA), has reprimanded EFG Bank AG and imposed a HK$10.85 million penalty for breaches involving product due diligence, inadequate record‑keeping and delayed regulatory reporting between January 2015 and December 2020.
The enforcement action followed EFG’s own self‑report and an HKMA referral arising from its review of the bank’s due diligence shortcomings. Regulators found that, across 322 bonds, EFG did not sufficiently consider product‑specific features in its assessments and failed to update internal policies promptly to reflect regulatory changes. The bank also did not consistently provide customers with adequate information and warning statements when distributing certain complex products at or before the point of sale.
In addition, EFG was found to have kept no due diligence records for 141 bonds, and it did not notify the SFC immediately after first suspecting due diligence failures in July 2020, contrary to the Code of Conduct and the Management, Supervision and Internal Control Guidelines applicable to licensed and registered persons.
When determining the sanction, the SFC considered EFG’s remedial steps to strengthen its product due diligence framework and its cooperation with both the HKMA and the SFC during the investigations. The regulator also took account of EFG’s commitment to implement Enhanced Complaint Handling Procedures to conduct an intensive review of complaints from customers who acquired affected products during the period in question.
EFG is licensed under the Securities and Futures Ordinance to conduct Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) regulated activities. According to EFG’s impact assessment, it may have failed to factor in product‑specific features for 351 products over the relevant period; the enhanced complaint process will apply to any complaints from customers who purchased any of these products in that timeframe.
A Statement of Disciplinary Action, including a list of the 351 products, has been published on the SFC’s website.
, in a joint action with the Hong Kong Monetary Authority (HKMA), has reprimanded EFG Bank AG and imposed a HK$10.85 million penalty for breaches involving product due diligence, inadequate record‑keeping and delayed regulatory reporting between January 2015 and December 2020.){kind=link}