The Securities and Futures Commission ("SFC") has fined EFG Bank AG $10.85 million for regulatory breaches and internal control failures between 2015 and 2020. EFG failed in product due diligence and record-keeping, and late reporting. They have taken remedial measures and will implement Enhanced Complaint Handling Procedures ("ECHP").
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On December 11, 2025, the Securities and Futures Commission ("SFC") reprimanded and fined EFG Bank AG ("EFG") $10.85 million for non-compliance with product due diligence, record-keeping, and timely reporting between January 2015 and December 2020.
The SFC investigation, initiated by EFG's self-report and HKMA referrals, revealed that EFG failed to account for product-specific features during due diligence, did not update internal policies for regulatory changes, and did not adequately inform or warn customers prior to transactions. Furthermore, EFG maintained incomplete records for 141 bonds and did not promptly report suspected issues to the SFC in July 2020.
In determining sanctions, the SFC considered EFG’s corrective actions to strengthen its due diligence framework, its cooperation with HKMA and SFC, and its implementation of Enhanced Complaint Handling Procedures ("ECHP") for affected products. EFG also failed to adhere to the Code of Conduct and Management, Supervision, and Internal Control Guidelines, with an estimated oversight of 351 products, all of which are currently being reviewed under the ECHP. Details, including a list of these products, are available on the SFC's website.
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