The Securities and Exchange Commission sanctioned HSBC Private Bank (Suisse) SA US $12.5 million for providing certain broker-dealer and investment advisory services to US persons without registration as a broker-dealer or investment advisor from 2003 through 2011. According to the SEC, these services were provided to approximately 368 permanent US residents for which HSBC realized in excess of US $5.7 million in income. During the relevant time period, charged the SEC, HSBC personnel came to the US to solicit new, or service, existing clients for transactions requiring registration when no registration was effective. Although during the period HSBC “understood there was a risk of violating the federal securities laws by providing broker-dealer and investment advisory services to US clients without being registered with the Commission, and took certain measures to manage and mitigate the risk,” the measures were not sufficiently implemented to prevent the violations, said the SEC. HSBC was fined US $2.6 million and required to disgorge all related net income and to pay prejudgment interest (approximately US $4.2 million) to resolve this matter. HSBC admitted all the facts alleged by the SEC in its order related to this matter, and acknowledged that its conduct violated federal securities laws.