SEC asks Lehman Brothers to hand over mini bond documents

The SFC immediately stepped in after every reporter Li Lingxia the bankruptcy of Lehman Brothers in Hong Kong last September, when it exposed alleged irregularities in the sale of Lehman's micro-bonds. Recently, the SFC announced the latest survey progress.　　The Hong Kong Securities and Futures Commission (SFC) was informed by the SFC yesterday that it had applied to the High Court of Hong Kong for an order to require the liquidation of the US Lehman Brothers Asia Investment Limited to submit a number of records on the SFC's investigation into the sale and promotion of its related mini-bonds. It is understood that Lehman Brothers was responsible for the evaluation of a newproductreviewcommittee (new product Review Committee) of the Internal Committee.　　The SFC is of the view that the new Product Review Board is responsible for overseeing or approving products including mini bonds, which are related to the Commission's ongoing investigation. However, after receiving the notice from the SFC, Lehman Brothers provided a number of documents, but they enjoyed legal professional confidentiality and refused to hand over 17 other documents on the basis that they should not be surrendered to the SFC.　　In fact, the SFC believes that Lehman Brothers filed these documents with legal professional confidentiality, as a member of the new Product Review Board was the result of a company lawyer from Lehman Brothers. The SFC does not agree that the full contents of these documents are necessarily information that would effectively raise the right to legal professional confidentiality, and that the Lehman Brothers should comply with the SFC's notice to hand over the documents to the SFC.　　Since December 2008, the SFC has been discussing with the liquidators and lawyers of Lehman Brothers, but the dispute over the right to confidentiality of legal profession remains unresolved. The SFC has applied to the Court for the commencement of the proceedings to ensure that the dispute is independently adjudicated.　　The case has been in place until July 22, 2009 for the hearing to be directed by Judge Bao Yanming (Justicebarma). In addition, as the investigation continues, the SFC said it would not disclose other details of the investigation.