Hong Kong’s market regulator lifted a ban on UBS' ability to sponsor initial public offerings in the territory – two months earlier than expected.
The Securities and Future Commission in Hong Kong, or SFC, lifted a ban against UBS after a ten-month review, it said in a statement on Tuesday. Imposed last year, the ban had prevented the Swiss bank from leading initial public offerings.
The Zurich-based wealth manager clocked the ban after the watchdog found failures in three Chinese stock-listings. UBS was fined HK$375 million ($48.2 million) over the lapses on IPOs including China Forestry, Tianhe Chemicals, and China Metal Recycling.
Mysterious Big Customer
For example, UBS was accused of failing to follow up on a meeting with the alleged largest customer of a chemical firm it helped to IPO. The person, named only as X, appeared at a meeting with no business card or other identification and left abruptly.
The SFC was «satisfied after its own assessment that UBS has clear requirements and procedures in place to enable staff members to understand and properly perform their responsibilities,» it said adding that compliance was further enabled by systems, controls, policies, and procedures it found effective based on a separate, independent review.
