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SFC reprimands and fines Morgan Stanley HKD 224 million and Merrill Lynch HKD 128 million for sponsor failures

  • Mar 15, 2019

The SFC has reprimanded and fined Merrill Lynch and Morgan Stanley for failing to discharge their obligations as one of the joint sponsors in relation to the listing application of Tianhe Chemicals Group Limited (Tianhe) in 2014

The SFC’s investigations revealed that Merrill Lynch had failed to follow the specific guidelines on due diligence interviews under paragraph 17.6 of the Code of Conduct (Notes 3 and 4).

The SFC has reprimanded and fined Morgan Stanley Asia Limited (Morgan Stanley) for failing to discharge its obligations as one of the joint sponsors in relation to the listing application of Tianhe Chemicals Group Limited (Tianhe) in 2014 (Notes 1 and 2). The SFC’s investigations revealed that Morgan Stanley had failed to follow the specific guidelines on due diligence interviews under paragraph 17.6 of the Code of Conduct (Notes 3 and 4).

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