In January 1997 and January 1998, HSBC Securities solicited securities transactions from a certain customer (a securities investment advisor, who provides discretionary investment service) with a promise to make a payment to the customer under the pretext of advisory fees, in return for orders from the customer.
The foregoing is acknowledged to fall under the ''act of soliciting business from any customer with a promise to provide any special benefit to the customer, in connection with the sale or purchase of, or any other form of transaction in, a security'' provided for in Item (2), Article 2 of the Ministerial Ordinance Concerning Prudential Standards, etc. of Securities Company (before the Ordinance No.33 of Prime Minister's Office and Ministry of Finance of 1998 became effective on December 1, 1998).
