Swiss perspectives in 10 languages

UBS fined and denied right to sponsor IPOs in Hong Kong

SFC
The Hong Kong SFC accused UBS of substandard due diligence and failure to address red flags. Keystone

Swiss bank UBS has been fined HK$375 million (CHF48 million) for irregularities involving three IPOs it had help list on the Hong Kong stock exchange in 2009. Its licence to sponsor IPOs in the city was also suspended for one year.

On Thursday, Hong Kong’s Securities and Futures Commission (SFC) announced the measures against UBS and its local subsidiary for failing to exercise due diligence as a sponsor for several IPOs (initial Public Offerings). A sponsoring bank normally receives higher fees than other participating institutions, but also has to guarantee the authenticity of the information about a company.

According to the Reuters news agency, the IPOs UBS was involved in include China Forestry and Tianhe Chemicals. A third unnamed company is believed to be China Metal Recycling, which is now defunct.

“The sanctions send a strong and clear message to the market that we will not hesitate to hold errant sponsors accountable for their misconduct,” said Ashley Adler, CEO of the SFC.

UBS agreed to an independent review of its sponsor business.

Other banks fined by the SFC for similar violations include Morgan Stanley (HK$224 million), Merrill Lynch (HK$128 million) and Standard Chartered (HK$59.7 million).

Popular Stories

Most Discussed

News

Mark Thomson to become CERN's new General Manager from 2026

More

CERN selects new director-general

This content was published on The CERN Council has chosen British physicist Mark Thomson as the organisation's next director-general.

Read more: CERN selects new director-general

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

You can find an overview of ongoing debates with our journalists here . Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR