Hong Kong SFC Fines TC Capital International Limited $3 Million

The Securities and Futures Commission (SFC) has reprimanded and fined TC Capital International Limited (TC Capital) $3 million for failing to discharge its duties as the sponsor in the listing application of China Candy Holdings Limited (China Candy).

The disciplinary action followed the SFC's investigation which found that TC Capital failed to conduct reasonable due diligence on the third party payments made on behalf of two top customers of China Candy and maintain proper records of the due diligence work allegedly done in relation to the listing application.

The SFC has also suspended the licence of Mr Edward Wu Wen Guang for seven months from 29 July 2022 to 28 February 2023 for failing to discharge his duties as a responsible officer and sponsor principal of TC Capital in charge of China Candy's listing application and the supervision of the transaction team responsible for the listing application.

The SFC is of the view that TC Capital's conduct fell below the standards expected of it as a sponsor and breached the requirements under Chapter 17 of the Code of Conduct. The SFC also considers that TC Capital's failures are attributable to Wu's failure to discharge his duties as a sponsor principal, a responsible officer and a member of the senior management of TC Capital.