Hong Kong's SFC Releases Conduct Requirements for Bookbuilding and Placing Activities

Hong Kong’s financial market watchdog, the Securities and Futures Commission (SFC), announced that it has released consultation conclusions on conduct requirements for capital market transactions in Hong Kong.

The regulator’s proposals, which received broad support, aim to clarify the roles of intermediaries and set out the standards expected of them in bookbuilding, pricing, allocation and placing activities.

“Capital market intermediaries play a key role in capital raising activities in Hong Kong. Enhancing the transparency and promoting the fairness and orderliness of these activities are crucial for the development of a healthy capital market,”said Ms Julia Leung, the SFC’s Deputy Chief Executive Officer and Executive Director of Intermediaries.

“The conduct requirements will also help to ensure consistency with global regulatory standards and expectations, while addressing some undesirable behaviour,”Leung added.

In its latest enforcement action, the SFC banned Mr Lau Tin Yau, a former relationship manager of Standard Chartered Bank (Hong Kong) Limited (SCBHK) and former execution dealer of UOB Kay Hian (Hong Kong) Limited (UOB) and UOB Kay Hian Futures (Hong Kong) Limited (UOB Futures), from re-entering the industry for life​.