The Hong Kong regulator, the Securities and Futures Commission (SFC) has reprimanded and fined UBS US$47.7m for failing to discharge its obligations as one of the joint sponsors of three listing applications in China.
UBS was one of three listing applications: China Forestry Holdings Company Limited, Tianhe Chemicals Group Limited, and another listing application.
The regulator also partially suspended UBS Securities Hong Kong's licence to advise on corporate finance for one year, so that UBS Securities Hong Kong will not act as a sponsor for listing application on the Stock Exchange of Hong Kong Limited (SEHK) of any securities.
The SFC has also suspended the licence of Cen Tian, UBS's lead banker on the project, for two years. He was approved to act as a sponsor principal and an executive officer of UBS during periods between October 2007 and May 2015. The suspension of his license is for failing to discharge his supervisory duties as a sponsor principal in charge of supervision of the execution of China Forestry's listing application, according to the SFC.
The SFC's investigations claim that UBS has failed to make reasonable due diligence enquiries in relation to a number of core aspects of China Forestry's business.