Zambia's SEC sanctions Standard Chartered
Multinational bank has been sanctioned by Zambia's Securities and Exchange Commission for mis-selling bonds issued by state-backed Chinese developer Sino-Ocean to one of its local wealth clients at the height of the Asian country's real-estate crisis.
According to Reuters, which cited a source familiar with the matter, Standard Chartered was said to be facing "enforcement action" for two breaches of SEC rules following a months-long investigation that stemmed from its failure to disclose "material information" about bonds it sold in March 2022, which defaulted just over a year later and were now almost worthless.
Zambia's SEC also found Standard Chartered had used "exclusionary" contract clauses, which left its client holding all responsibility for the risks, which goes against the country's securities rules.
Standard Chartered said: "We respect the outcome of the Securities Exchange Commission in Zambia, however, in accordance with appropriate local procedures we will respectfully be exercising our right to appeal.
"We are fully aware of this matter, and we are reviewing the necessary details to clarify the situation. It is our priority at the Bank to ensure compliance with regulatory standards across all of our markets."
As of 0900 GMT, Standard Chartered shares were down 0.49% at 1,020.00p.
Reporting by Iain Gilbert at Sharecast.com
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