A former UBS managing director has been rewarded with the right to appeal an industry ban issued in 2019 over lapses in a Chinese initial public offering.
The Securities and Futures Appeals Tribunal (SFAT) has allowed Cai Hongping to apply for a review of the securities regulator’s five-year industry ban, according to a statement.
The ban issued in 2019 was part of broader disciplinary actions over failure to discharge obligations as joint sponsors in the listing application of China Metal Recycling. Banks that faced action included China Merchants Securities and UBS, which was slapped with a HK$375 million ($48.3 million) fine.
«No Unequivocal Material»
«The SFC alleged that Cai failed to discharge his supervisory duties as the Principal in relation to [China Metal Recycling’s] listing application,» the regulator said.
«While Cai accepted that he was a member of the senior management at UBS AG at the material time, he denied that he had been appointed by UBS AG as the leader of the transaction team – that is, the Principal, in [China Metal Recycling’s] listing application.»
According to the Securities and Futures Commission (SFC), the tribunal said there was «no unequivocal documentary material» to show that Cai was the appointed leader of the transaction team in question nor was he aware of the fact.
