April 28 (Reuters) - Hong Kong's licensing authority

said on Monday it had fined U.S.-based Interactive Brokers

Group's ( IBKR ) local unit HK$4.2 million ($541,453.42) for

erroneously loaning its clients' securities to other investors

without valid authorization.

The Securities and Futures Commission (SFC) said its

investigation found that the failure happened between December

3, 2017 and October 23, 2020, under which the loaned client

securities had an aggregate market value of HK$586 billion.

On or around October 27, 2020, IBHK became aware that

renewal notices were not sent to any of its clients since

December 2017 due to a programming error following an update,

the SFC said.

However, its clients did not suffer any loss from the

incident, the company told the agency.

The regulator also said IBHK had implemented further

remedial actions related to the incident, including distribution

of renewal notices to clients every 11 months.

IBHK did not immediately respond to Reuters' request for

comment.

($1 = 7.7569 Hong Kong dollars)