Hong Kong's Securities and Futures Commission fined Noah Holdings (Hong Kong) Ltd. HK$5 million for internal system and control failures in its sale and distribution of investment products.
The regulator said May 29 that the company failed to comply with various regulatory requirements on know-your-client, product due diligence, suitability assessment, information for clients, and sales supervision and controls.
The regulatory breaches, which took place between January 2014 and June 2016, were discovered during an inspection by the regulator and an independent review.
The SFC noted that Noah Holdings (Hong Kong) has engaged an independent reviewer to review its internal controls, taken remedial actions to strengthen its internal systems and controls, and agreed to reimburse customers affected by the company's regulatory breaches.
Noah Holdings (Hong Kong) is a unit of Noah Holdings Ltd.
