The contingency plan comes after the UK bank’s Korea unit sold US$900m worth of autocallable products tracking the HSCEI.
Standard Chartered Bank Korea (SCBK) has put US$100m aside to redress investors as part of the compensation scheme in accordance with the Korean financial watchdog recommendations regarding the disputes over the embattled equity-linked securities (ELS) tracking the Hang Seng China Enterprises Index (HSCEI). Due to the performance of the HSCEI, some ELS have matured at a loss, and it is anticipated additional customers may redeem ELS at a loss - Diego De Giorgi, Standard Chartered The UK