The Monetary Authority will examine the penalty for investment product misselling involving banks in its report on the adequacy of investor protection in Hong Kong, to be submitted to the Financial Secretary in three months.

Speaking on a radio talk show this morning, the authority's Deputy Chief Executive YK Choi said the authority has so far received 8,200 complaints alleging banks improperly sold Lehman Brothers-related investment products. It has assessed 600 cases.

Seventy-one complaints have evidence of misselling and the authority will launch in-depth investigations. Seventeen cases have insufficient evidence while further information is being sought in 514 cases.

He estimated that it will take at least two months to finish the initial assessment of all the complaints, adding the body has deployed 70 staff to handle the investigations and hired 45 temporary staff to deal with the related frontline work.

Noting it will handle the incident seriously, Mr Choi said if it confirms the cases involve misselling, an appropriate penalty will be imposed on concerned banks or their staff.  

The deputy chief executive said the authority has been closely monitoring banks' practices for selling investment products. Apart from issuing guidelines and advice, it launches about 40 on-site inspections annually.