Hong Kong's Securities and Futures Commission (SFC) reprimanded Societe Generale International Brokerage Co., Ltd. and fined $3.5 million for exploiting the company's internal control failures in monitoring suspicious trading activities and recording customer orders.。

The SFC investigation found that Societe Generale International failed to effectively implement its internal policy on post-trade monitoring and ensure that all unusual transactions flagged by its post-trade monitoring system were properly reviewed between August 1, 2017 and July 31, 2019 and June 1, 2020.。

China Industry also failed to ensure that the results and results of alert checks between March 2016 and October 2020 were adequately documented, and failed to establish effective compliance procedures to ensure that internal policies regarding post-transaction monitoring and alert check recording were properly implemented during the relevant period.。

In addition, SFC found that Societe Generale International failed to comply with regulatory requirements for telephone instruction recording during the period, failed to effectively implement its internal policy on telephone instruction recording, and properly recorded and maintained customer telephone instruction for at least 1,034 orders.。

In addition, Societe Generale International failed to effectively monitor its account managers, take adequate and timely follow-up action for violations of its internal policy on telephone order recording, and failed to report to the SFC immediately upon learning that its account managers had violated the regulatory requirements for recording telephone orders.。

In deciding on disciplinary action, the SFC took into account the cooperation of HSI in addressing SFC's concerns and its otherwise clean disciplinary record.。