Defendant Name: HSBC Securities (USA) Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: HSBC Holdings plc
SIC Code: 6035
CUSIP: 40428040

Initial Case Details

Legal Case Name In the Matter of HSBC Securities (USA) Inc.
First Document Date 16-Mar-2020
Initial Filing Format Administrative Action
File Number 3-19730
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4) Advisers Act; Rule 206(4)-7 Advisers Act

Resolutions

First Resolution Date 16-Mar-2020
Headline Total Penalty and Disgorgement $725,000

Related Documents:

34-88387 16-Mar-2020 Administrative Proceeding
Corrected Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On March 16, 2020, the SEC instituted settled administrative and cease-and-desist proceedings against HSBC Securities (USA) Inc. The SEC stated: "This matter arises out of misrepresentations regarding how HSBC Securities compensated dual-registered investment adviser representatives (“IARs”) in its Retail Banking and Wealth Management business. Between November 2015 and August 2017, HSBC Securities made false and misleading statements to current and prospective advisory clients and failed to disclose conflicts of interest concerning the factors HSBC Securities used to determine compensation for its IARs."
34-88387-s 16-Mar-2020 Administrative Summary
SEC Charges HSBC Securities for Misleading Retail Clients On Adviser Compensation
The SEC stated that: "[It] settled charges against HSBC Securities (USA) Inc. for making misrepresentations to its retail clients regarding how it compensated its dually registered investment adviser and broker representatives (IARs)."