H.K. Regulator Said to Warn Banks of Sanctions not Deals

Hong Kong’s Securities and Futures Commission told banks and other firms that penalties in misconduct cases will have tougher sanctions that go beyond remedies like reimbursing investors for losses, a law firm said.

Chief Executive Ashley Alder and enforcement head Mark Steward told more than 200 representatives of investment banks and advisers that so-called remedial solutions imposed in the past in place of penal sanctions were strategic, and will not be repeated, according to a report on the Sept. 2 briefing by law firm Herbert Smith Freehills.