SFC should investigate BOCHK

HKSFC has forgone their duties in investigating BOCHK manangement in mis-selling frauds in the following areas for the bank whole system is at faults:

SFC did not approve the Minibonds, Octave Notes, Constellation Notes internal structure, e.g. the CDO's underneath the collaterals , SFC only looked at the brocedures to ensure these structure products met their requirements and these structure products were sold to inexperience investors and police CCB actions had proved that these BOCHK inexperience selling staffs on derivatives products were responsible to explain to the customers what were inside these structure products.

A. What was the truth underneath these structure notes as these inexperience BOCHK staffs told their customers that these structure notes were bonds while their experience managements that also had trading experience with CDO's never done any selling and training of their staffs. The trainings were mostly performed by Vocation Training Center.

B. How HSBC, Lehman controlled PIFL, DBS Singapore and US Morgan Stanley operated to ensure rates were payed to customers for Minibonds, Constellation Notes and Octave Notes.

C. What were inside the collaterals of these structure products - every product contained hundreds and more of these securities, CDOs and which BOCHK department were responsible to look into these CDOs.

D. The risk forms were designed by BOCHK managements and no information from BOCHK on any type of supervisings were maintained by BOCHK and this intended mismanagement of BOCHK that different from private banks and for which allowed selling forms to be intentionally tempered with by selling staffs.

F. BOCHK has lot of trading experience with CDOs, but the non-existing experience of the advisors to their clients for CDOs while BOCHK investment teams inside central office had lot of experts in these areas.

G. The cost of running these scams products with approval from SFC under the HK laws while these high gain structures products are banned and not to be sold worldwide to bank customers. Where are these products profits went to up to now? Would ex-Lehman staffs, DBS Singapore and US Morgan Stanley or HSBC took all these profits ?

For Octave Notes and Constellations Notes not related to Lehman, I had already filed the complaints to SFC and still no actions has taken yet.
In fact, SFC lawyers should publish reports to public of these findings and assist the HK CCB to lay charge of BOCHK.

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