According to the SFC, the bank had the licence to provide services only to professional investors - an agreement the firm allegedly breached by failing to conduct an annual confirmation of its clients' activities and to maintain adequate written records of investment advice rendered.

"The difference between professional investors and ordinary retail customers is a profoundly important one. Firms that do not classify customers properly, in strict compliance with the requirements, impose undue risks on those customers," said Mark Steward, the executive director of enforcement at SFC, in a statement. "The SFC will not hesitate to take deterrent action in these cases."

Julius Baer did not admit to the said failures, but had agreed to bring in a third party reviewer to probe into the matter.