SFC ban on former UBS exec may be reviewed
The Hong Kong Securities and Futures Appeals Tribunal (SFAT) allowed the application for review by Mr Cai Hongping, former Executive Officer and Managing Director of UBS AG, against the decision of the Securities and Futures Commission (SFC) to ban him from re-entering the industry for five years.
The SFC’s decision followed its earlier disciplinary actions against UBS AG and China Merchants Securities (HK) Co., Limited (CMS) for failing to discharge their obligations as joint sponsors in the listing application of China Metal Recycling Holdings Limited (China Metal).
The SFC alleged that Cai failed to discharge his supervisory duties as the Principal in relation to China Metal’s listing application. 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’s listing application.
Noting that there is no unequivocal documentary material to show that Cai had acknowledged that he had taken up the position as the Principal in charge of the transaction team, the SFAT concluded that there is insufficient evidence to show that he was appointed leader of the transaction team and that he was aware of that fact. Therefore, Cai cannot be held personally responsible for the failings of the transaction team.
In March 2019, UBS AG and UBS Securities Hong Kong Limited were reprimanded, suspended and fined $375 million by the SFC for sponsor failures in relation to three listing applications, including China Metal’s listing application.