Singapore Exchange Regulation (SGX RegCo) is lifting the moratorium against UOB Kay Hian with immediate effect, the regulator announced on Oct 17.
SGX RegCo had imposed several requirements against the brokerage under Mainboard Rule 1405(1)(k) and Catalist Rule 305(1)(k) on Dec 27, 2022, after UOB Kay Hian was found to have failed to comply with business conduct requirements under the Securities and Futures (Licensing and Conduct of Business) Regulations. UOB Kay Hian also failed to comply with requirements for regulations pertaining to anti-money laundering and countering the financing of terrorism requirements under MAS Notice SFA04-N02.
The requirements imposed by the SGX RegCo included prohibiting UOB Kay Hian from acting as an issue manager or as a full sponsor for initial public offerings (IPOs) on SGX’s Mainboard and Catalist board and reverse takeover (RTO) submissions. This excluded submissions where UOB Kay Hian agreed to act as an issue manager or full sponsor before Aug 31, 2022.
The requirements came after the Monetary Authority of Singapore (MAS) announced, on Aug 31, 2022, that it imposed a $375,000 composition penalty on the brokerage for the same reasons.
In its Oct 17, SGX RegCo said that the brokerage has taken “remedial action” to strengthen its policies and procedures for IPO and RTO transactions. This includes an “enhanced oversight” on the activities made by UOB Kay Hian’s corporate finance department.
Shares in UOB Kay Hian closed 1 cent higher or 0.63% up at $1.59 on Oct 17.
