We posted earlier this month about the China Securities Regulatory Commission investigating several IPOs as part of its regulatory push in the area. (http://lawofficesjtp.wpenginepowered.com/chinese-securities-regulator-announces-ipo-investigations-on-six-companies/)
Now, there’s news this week that Hong Kong’s Securities and Futures Commission is investigating UBS’s conduct in sponsoring IPOs. UBS made the announcement in its most recent quarterly earnings report. UBS announced that the Commission gave notice it would take action against the company and certain unnamed employees for their work in sponsoring IPOs.
In the filing, UBS announced that possible penalties for the alleged violations include fines, a restitution order or suspension from providing corporate financial advisory services in Hong Kong.
Hong Kong has strengthened its securities laws in the past few years by making banks that conduct due diligence and prepare IPO documentation subject to potential liability for misrepresentations and material omissions in offering documents.
Jeff Petersen is a securities attorney licensed in California and Illinois representing clients in a wide variety of regulatory investigations and enforcement matters. He can be reached in California at 858.792.3666 and in Illinois at 312.583.7488.