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Compliance & Regulation

SFC fines UBS HKD375 million and suspends its licence for one year

The SFC in Hong Kong has reprimanded and fined UBS AG and UBS Securities Hong Kong (collectively, UBS) a sum of HKD375 million for failing to discharge their obligations as one of the joint sponsors of three listing applications.

The SFC also partially suspended UBS Securities Hong Kong’s licence 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 Limited (SEHK) of any securities.

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

Mr Ashley Alder, the SFC’s Chief Executive Officer, said: “The outcome of these enforcement actions for sponsor failures – particularly failings when conducting IPO due diligence – signify the crucial importance that the SFC places on the high standards of sponsors’ conduct to protect the investing public and maintain the integrity and reputation of Hong Kong’s financial markets.  The sanctions send a strong and clear message to the market that we will not hesitate to hold errant sponsors accountable for their misconduct.”