Swiss bank UBS and Standard Chartered reached a settlement over alleged misconduct in a 2009 Hong Kong initial public offering (IPO), according to a 2017 Reuters report. The case involved the collapse of a Chinese forestry company that raised $216 million before being liquidated 14 months later.
The Securities and Futures Commission (SFC) had previously proposed an 18-month suspension of UBS's sponsor license and a HK$119 million fine for its role in the listing. While specific allegations remain undisclosed, the SFC's legal representative confirmed settlement details would be released later.
The defunct company, identified in regulatory filings as China Forestry, faced trading suspension after KPMG uncovered irregularities. UBS had planned to challenge the ban, but the settlement appears to resolve the matter. Standard Chartered, which exited its equity business in 2015, linked the case to the 2009 IPO in filings since 2016.
Spokespeople for both banks declined to comment. The SFC has not publicly confirmed the case but has not disputed the forestry company's involvement. The outcome highlights intensified scrutiny of IPO practices in Hong Kong, a key market for banking firms.
