Hang Seng Bank has been fined HK$66.4 million for regulatory failures and overcharging clients.

The Securities and Futures Commission on Monday said it found significant regulatory breaches on the bank’s sale of collective investment scheme and derivative products between February 2014 and May 2023, during which clients were overcharged and inadequately informed about the financial benefits.

It added that Hang Seng Bank received at least HK$22.4 million in excess fees from these transactions.

The SFC concluded that the bank had failed to operate with due care and diligence, ensure adequate disclosure to clients, prevent conflicts of interest, and comply with regulatory requirements necessary to protect client interests.

The bank, for its part, said it accepts the investigation findings, adding that it has already compensated the affected clients and taken remedial actions to rectify and strengthen its internal controls.