Merrill fined by hong kong watchdog over client fraud complaints

Hong Kong’s Securities and Futures Commission fined Merrill Lynch (Asia Pacific) Ltd. HK$3.5 million ($450,000) for failing to properly handle complaints of clients of one of its former private bankers.

Some of the clients’ complaints were incorrectly rejected and Merrill Lynch has agreed that an independent law firm and auditor will review all client accounts of the banker, Joyce Hsu, according to an SFC statement today.

Hsu was sentenced to 42 months jail in February 2011 after being convicted of 20 counts of theft, according to the statement.

Shirley Wong, a Hong Kong-based spokeswoman of Bank of America Merrill Lynch, declined to comment. Merrill has already compensated nine of the 11 clients who complained to the SFC and has strengthened its handling of complaints, according to the regulator’s statement.