UBS and UBS Securities fined HK$375m for IPO failures

Business | 14 Mar 2019 5:13 pm

The Securities and Futures Commission has reprimanded and fined UBS AG and UBS Securities Hong Kong a sum of HK$375 million for failing to discharge their obligations as one of the joint sponsors of three listing applications, namely, China Forestry, Tianhe Chemicals, and another listing application which is ongoing.

The securities regulator also partially suspended UBS Securities Hong Kong license to advise on corporate finance for one year, to the extent that UBS Securities Hong Kong shall not act as a sponsor for listing application on the Stock Exchange of Hong Kong of any securities.

The regulator also suspended the license of Cen Tian for two years from today to March 13, 2021 for failing to discharge supervisory duties as a sponsor principal in charge of supervision of the China Forestry’s listing application.

The SFC has today also taken action against other joint sponsors involved in the listing applications of China Forestry and Tianhe.

Meanwhile, the regulator has reprimanded and fined Standard Chartered Securities (Hong Kong) HK$59.7 million for failing to discharge its obligations as one of the joint sponsors in relation to the listing application of China Forestry in 2009.

Investigations revealed that Standard Chartered Securities had failed to make reasonable due diligence inquiries in relation to several core aspects of China Forestry’s business, including failure to verify the existence of China Forestry’s forestry assets, and inadequate due diligence on insurance coverage for the Group’s forestry assets.

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