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
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.
