UOB Kay Hian’s ban from IPO, RTO sponsor activities significant but unsurprising: market watchers 

UOB Kay Hian’s ( UOBKH ) ban from new issue and sponsor activities is a significant one, but comes as no surprise to market watchers polled by The Business Times.

Singapore Exchange Regulation (SGX RegCo) said on Tuesday (Dec 27) after market close that it was barring UOBKH from undertaking 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. This came after the Monetary Authority of Singapore (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 to anti-money laundering and countering the financing of terrorism requirements.

Robson Lee, a senior corporate lawyer, said he expected some form of operational consequence for UOBKH, following MAS’ earlier announcement. He noted that the fine UOBKH paid was a “small amount” and that it was likely left to SGX RegCo to administer the downstream consequences of UOBKH’s lapse. But the lack of a time limit on the ban was “rather unusual” and likely reflective of the gravity of the lapse, Lee said. “This is probably an unprecedented case of a very established institution having an unlimited ban,” he said.