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SFC fines top investment banks US$100 million for failures as IPO sponsors
14-03-2019, 07:25 PM.
Post: #1
SFC fines top investment banks US$100 million for failures as IPO sponsors
Hong Kong securities regulator fines top investment banks US$100 million for failures as IPO sponsors
* Swiss bank UBS’ two units ordered to pay HK$375 million by the Securities and Futures Commission
* Former UBS banker Cen Tian’s licence suspended for two years

Enoch Yiu   
Published: 7:11pm, 14 Mar, 2019

Hong Kong’s securities watchdog slapped a record fine of HK$786.7 million (US$100.2 million) on investment banks UBS, Morgan Stanley, Merrill Lynch and Standard Charted for failing in their duties as IPO sponsors.

Swiss lender UBS bore the brunt of the fine. Its two units UBS AG and UBS Securities Hong Kong were ordered to pay HK$375 million for failing to conduct proper due diligence on the quality of the listing candidates in their role as one of the joint sponsors in three initial public offerings, according to a statement from the Securities and Futures Commission.

The three IPOs were of China Forestry Holdings in 2009; Tianhe Chemicals Group in 2014; and another listing application, which the SFC did not name as the investigation was ongoing.

The SFC banned UBS Securities from sponsoring IPOs for one year.

The regulator also suspended the licence of former UBS banker Cen Tian for two years for failing in his supervisory duties in China Forestry’s IPO.

The commission fined US investment banks Morgan Stanley Asia HK$224 million and Merrill Lynch Fast East HK$128 million for failures as joint sponsors in Tianhe Chemicals’ IPO.

The SFC also fined Standard Chartered Securities (Hong Kong) HK$59.7 million for failing in its duty as joint sponsor of China Forestry Holdings.

More details in https://www.scmp.com/business/investor-r...investment
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16-03-2019, 04:44 PM. (This post was last modified: 16-03-2019, 04:44 PM by weijian.)
Post: #2
RE: SFC fines top investment banks US$100 million for failures as IPO sponsors
As much such as David Webb has shown much hanky panky on HKEX, but it does seem like the SFC is ready/able to fine institutions for failing their duties. Besides the big cases like 1MDB where Singapore's reputation is been affected internationally, seems like most hanky panky on SGX that violates the OPMI, goes unpunished.

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