due diligence

due diligence

Hong Kong - Bank's duty of care, due diligence and codes of conduct.

6h ago
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On the Breach of the Duty of Care charge, the Court addressed the issue of due diligence by the Bank, and found that if the auditors and custodian bank are supposed to work according to professionally acknowledged standards or code of conduct or declared principles which are acceptable, then unless there are matters that raise concerns about their reports, the financial adviser from the Bank can safely rely on the reports without making any further enquiry. Should this be interpreted to mean that if the due diligence that a bank follows is part of the standard industry practice, then they have no further duty to investigate a fund that it sells to customers to ensure it actually has the assets it claims to possess?