Standard Chartered said that it is being probed by Hong Kong's securities regulator for its role as a joint sponsor of an initial public offering (IPO) in 2009.
In its third quarter earnings statement, the bank said that the Hong Kong Securities and Futures Commission (SFC) “intends to take action against Standard Chartered Securities (Hong Kong) Limited (SCSHK) in relation to its role as a joint sponsor of an initial public offering listed on the Hong Kong Stock Exchange in 2009”.
The British lender said that SFC’s scope of action could include financial consequences for SCSHK.
The announcement by Standard Chartered comes soon after UBS’ announcement that it is being probed by SFC for its role as a sponsor of IPOs. The Swiss bank said that it could face financial penalties, and scrapped of its ability to offer corporate finance advisory services in the country for a period of time.
The moves come after SFC introduced a new regulation that holds banks sponsoring IPOs liable for claims made in prospectuses.