UOBKH Banned by SGX RegCo from Acting as Issue Manager or Full Sponsor

SGX RegCo (Singapore Exchange Regulation) has imposed additional penalties against UOB Kay Hian over its failures to comply with business conduct requirements.

In late August, MAS (Monetary Authority of Singapore) fined UOBKH SGD 375,000 (USD 268,000) for failures to implement adequate controls in its corporate finance business and to ensure that the business was subject to internal audit.

MAS also said UOBKH's internal policies and procedures on conducting due diligence for IPOs failed to meet the standards set out in the ABS (Association of Banks in Singapore) Listings Due Diligence Guidelines.

In a notice on Tuesday (27 December), SGX RegCo said it has considered the actions taken by MAS and the interests of the market, and decided to impose additional requirements on UOBKH.

The company will not be allowed to undertake new mandates to act as an issue manager or full sponsor for SGX Mainboard and Catalist IPO and RTO (reverse takeover) submissions, until such date as SGX RegCo specifies in writing.

An exception is allowed for IPO and RTO submissions for which UOBKH agreed to act as issue manager or full sponsor before 31 August 2022.

UOBKH will be subject to certain requirements in respect of its introducing activities as a full sponsor, SGX RegCo said.

A review of the prohibitions will be subject to UOBKH satisfactorily addressing and fulfilling all recommendations, conditions, and directions that SGX RegCo has specified for the firm.