Standard Chartered PLC and UBS Group AG agreed to settlements over allegations of market misconduct related to a 2009 IPO in Hong Kong, Reuters reported, citing a counsel for Hong Kong's Securities and Futures Commission.
The commission had filed a lawsuit against StanChart, UBS and auditor KPMG LLP related to the US$216 million IPO of China Forestry Holdings Co., which later collapsed. UBS Securities Hong Kong Ltd was suspended from the key task of sponsoring IPOs in Hong Kong for 18 months, and hit with a fine of HK$119 million.
It had reportedly been planning to appeal the ban, with StanChart and UBS banker Cen Tian slated to do likewise over the sanctions they received. The settlement, however, negates the need for the appeals. Settlement details will be released later, SFC counsel Jat Sew-Tong told a tribunal March 11.
StanChart closed its global equity business in 2015.