Hong Kong Monetary Authority (HKMA) Deputy Chief Executive Peter Pang Sing-tong referred his son for an internship at J.P. Morgan Chase & Co. in 2006, the Wall Street Journal reported on Wednesday.
The referral was listed in an internal document to be passed to the U.S. Justice Department, as the firm is now under investigation for its “Sons and Daughters” programme, which refers to the hiring of the relatives of China’s business leaders.
Pang responded in an emailed statement saying that he only sent the bank his son’s curriculum vitae, but had not done anything to influence the recruitment decision.
Norman Chan Tak-lam, Chief Executive of HKMA, said he did not think there is any problem regarding Pang’s forwarding of his son’s CV as Pang, himself, did not influence the hiring decision.
Chan also said Pang’s duties at the HKMA do not involve banking supervision or related business. Rather, Pang is responsible for “monetary management, financial infrastructure and research,” according to the website of HKMA.
Pang said he sent the CV to a friend after learning that the bank has available internships. Studying economics at the University of Chicago, his son passed the selection process and successfully won the two-month internship.
“HKMA requires banks to maintain proper employment systems as well as adequate internal controls on potential conflict of interests,” a HKMA representative told the Wall Street Journal.
Chan said HKMA has clear regulations for its employees’ duties to avoid conflicts of interest, but there are no specific guidelines on internship referrals. He said HKMA will look into the need for clearer clarification.