The article Hong Kong’s SFC imposes HK$375m fine on UBS over host failures appeared initially on FinanceFeeds.
Mr Ashley Alder, the SFC’s Chief Executive Officer, said:”The results of those enforcement actions for sponsor failures — especially failings when conducting IPO due diligence — indicate the vital significance that the SFC places about the elevated standards of patrons’ behavior to protect the investing public and take care of the integrity and standing of Hong Kong’s financial markets. The sanctions send a powerful and clear message to the marketplace that we won’t be afraid to hold errant sponsors accountable for their misconduct.”
The SFC’s investigations show that UBS has failed to create reasonable due diligence enquiries in relation to several core elements of China Forestry’s company. Inter alia, the lender is found to have failed to check the occurrence of China Forestry’s forestry funds and also to have failed to confirm China Forestry Group’s forestry rights. The lender didn’t verify correctly China Forestry’s compliance with applicable regulations and laws.
The SFC has also suspended the licence of Mr Cen Tian for a couple of years. Cen has also been licensed to carry on Type 6 (advising on corporate finance) regulated activity under the SFO as a representative of UBS Securities Hong Kong since 7 June 2012. The suspension of his license is for failing to discharge his supervisory duties as a sponsor principal responsible for oversight of the execution of China Forestry’s listing application.
(The SFC will not disclose the comprehensive findings that led to its disciplinary actions against UBS in relation to the Other Listing Program until the end of its disciplinary proceedings against these other celebrations ).
Regarding Tianhe’s record application, the SFC’s investigations have found the UBS, one of the joint patrons in Tianhe’s list program, had neglected to follow the specific recommendations on due diligence offenses in paragraph 17.6 of the Code of Conduct.
In deciding the penalties, the SFC considered that the deficiencies identified in regard to UBS are extensive. But, UBS agreed to engage an independent reviewer to assess its own policies, practices and procedures in relation to the conduct of its sponsor business.
The regulator also partly suspended UBS Securities Hong Kong’s permit to advise on corporate finance for one year, therefore that UBS Securities Hong Kong will not act as a sponsor for list application in the Stock Exchange of Hong Kong Limited (SEHK) of any securities.