SFC and Karl Thomson Agreement on Lehman Minibonds

On 13 January 2010, the SFC announced that it had reached an agreement with Karl Thomson Investment Consultants Ltd (Karl Thomson) to resolve issues arising from the sale of Lehman Brothers Minibonds (Minibonds) by Karl Thomson . Karl Thomson has informed the SFC that it had made repurchase offers voluntarily to the 11 affected clients, and that all these clients have accepted the offers and entered into repurchase agreements. Under the agreement, Karl Thomson has agreed to undertake certain activities including, but not limited to: immediately implementing a special enhanced complaints handling procedure; engaging an independent reviewer, to be approved by the SFC, to review its systems and processes relating to the sale of structured products and to report to the SFC, and committing to the implementation of all recommendations by the independent reviewer; and setting aside $38,453.93, being commission income earned by it from the sale of Minibonds, to be paid to the Hong Kong Securities Institute to meet the costs of a series of seminars and/or training programmes on the subject of compliance with the SFC’s Code of Conduct  regarding the sale of investment products to retail investors. For further information please use the following link Karl Thomson Agreement