HONG KONG: A former high UBS banker in Hong Kong, Cai Hongping, has had a five-year ban from the monetary trade for misconduct on an preliminary public providing overturned after a overview, the town’s Securities and Futures Fee (SFC) stated on Friday.
In 2019 the SFC, within the fruits of a crackdown on shoddy itemizing requirements in Hong Kong, banned UBS from main IPOs within the metropolis for a yr, and fined it and three rivals a mixed US$100 million for due diligence failures on three IPOs.
These included that of the now-defunct scrap service provider China Metallic Recycling (CMR).
Later that yr, the SFC additionally banned Cai, previously chair of UBS’s Asian Funding Banking division, from the trade for 5 years, saying he was “not a match and correct particular person to be licensed” and/or was personally culpable for UBS’ failure to hold out essential due diligence throughout CMR’s IPO.
After Cai sought a overview of that call, the chairman of Hong Kong’s Securities and Futures Appeals Tribunal, Michael Hartman, stated in a dedication dated 2 June that the ban ought to be put aside.
Hartman stated it couldn’t be proven that the stability of chance was that Cai knew he was the appointed chief of the transaction group for the CMR IPO, and due to this fact he couldn’t be held personally answerable for the group’s failings.
The SFC declined to remark past an emailed abstract of the tribunal’s resolution. UBS declined to remark, whereas Cai couldn’t be instantly reached for remark through his present employer.
CMR in 2013 grew to become the primary agency in Hong Kong to be wound up by the SFC, which pushed forward with the liquidation earlier than it had completed investigating whether or not the corporate had overstated its monetary place in its IPO prospectus.
(Enhancing by Jan Harvey)