BNP Paribas Wealth Management has been slapped with a $4 million fine in Hong Kong for overcharging clients.
The Hong Kong Securities and Futures Commission’s (SFC) investigation found BNP Paribas had marked up fees on over 2,3000 client transactions between 2011 and 2013.
BNP Paribas made around $9.5 million from overcharging on equity, bonds, options and swaps investment products.
The SFC said BNP Paribas has agreed to ensure all overcharged amounts are returned to the affected clients, and will report to an independent reviewer on the repayments.
The Hong Kong watchdog said BNP Paribas had failed to “exercise due skill, care and diligence to ensure monetary benefits it received from clients transactions were fair and reasonable.”
It also said that the fine of $4 million would have been higher, but BNP Paribas had reported the matter to the SFC itself, and has an otherwise clean record.
The SFC said the bank has cooperated throughout the investigation.