UOBKH strengthens internal controls in response to SGX ban

BROKERAGE UOB Kay Hian (UOBKH) stated that it has taken remedial measures to enhance its internal policies and controls with regard to its role as an issue manager or full sponsor for public listings.

Barred by Singapore Exchange Regulation (SGX RegCo), UOBKH is not allowed to undertake new mandates to act as an issue manager or full sponsor for initial public offering (IPO) and reverse takeover (RTO) submissions on the local bourse.

SGX RegCo meted out the ban - announced on Dec 27 - after having deliberated the actions taken against the brokerage firm by the Monetary Authority of Singapore (MAS).

MAS on Aug 31 fined UOBKH S$375,000 for business conduct compliance failures. UOBKH had failed to adhere to the Securities and Futures (Licensing and Conduct of Business) Regulations, as well as anti-money laundering and countering the financing of terrorism requirements.

In its statement to SGX after trading hours on Wednesday (Jan 4), UOBKH said it has taken measures to strengthen its internal policies and controls, and has appointed an independent external party to evaluate these measures.

UOBKH added that it will work with the external party to implement recommendations raised and ensure that the remedial measures are effective in addressing concerns of MAS and SGX.

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“The impact of these requirements is not expected to be material to the group’s financial results for FY2023,” the statement said.

The counter closed S$0.01 or 0.7 per cent lower at S$1.40 on Wednesday.