Hong Kong seeks 'criminal liability' for IPO sponsors

13 December 2012 Last updated at 01:33 GMT

Hong Kong seeks 'criminal liability' for IPO sponsors

A Hong Kong watchdog has proposed that sponsors of initial share sales be held criminally liable for false information presented by firms they help to list on the stock exchange.

The Securities and Futures Commission said this would improve due diligence by sponsors, which prepare listing documents, and cut investor risk.

The move comes as accounting scandals at some firms have hurt investors.

The new rules still need to be approved by the Hong Kong legislature.

Ashley Alder, chief executive of the Securities and Futures Commission, said the new rules "will incentivise sponsors to raise standards, pick the right deals and manage them well, which should in turn reduce risks for investors and all those involved in the initial public offerings".

http://www.bbc.co.uk/news/business-20707367

I remember HK gov also force banks to compensate lehman investors.
Why can HK do all this but Singapore can't ? Do we have the right people in-place ?

Is one thing being a top financial centre but it seems another behaving as one.

(13-12-2012, 11:00 AM)corydorus Wrote: I remember HK gov also force banks to compensate lehman investors.
Why can HK do all this but Singapore can't ? Do we have the right people in-place ?

Is one thing being a top financial centre but it seems another behaving as one.

For sure, Spore is a top financial center - but it does so by having low taxes, strict enforcement laws and stability in the dollar backed by huge reserves - all these been pro-business, hence attracting big businesses and people with their money. Without this 'pro business' attitude up to the extent to disadvantage the masses who sre on the other side of the equation, there is little chance Spore can be a financial center

On the other hand, Hongkong, virtually been the gateway of China, does not have to prostitute themseles in this manner, hence they set the rules, have the louder say and the rest just have to eat it.

"Hongkong, virtually been the gateway of China, does not have to prostitute themseles in this manner, hence they set the rules, have the louder say and the rest just have to eat it."

Agreed on this. As long as Beijing continues to use HK as the finanical gateway for the entire China's Economy!

(13-12-2012, 06:18 PM)brattzz Wrote: "Hongkong, virtually been the gateway of China, does not have to prostitute themseles in this manner, hence they set the rules, have the louder say and the rest just have to eat it."

Agreed on this. As long as Beijing continues to use HK as the finanical gateway for the entire China's Economy!

Great postings mate.
Do you think Sink apore & Papys have no choice but to "comply" ( though cannot afford to follow) sooner or later in order to remain "reputable" and keeping up with "World's Standard"? We are really a little RED DOT you know?

Many watchdogs bark but have no willingness to bite.

(14-12-2012, 11:59 AM)soros Wrote: Many watchdogs bark but have no willingness to bite.

Ha! Ha!
Yes! Unlike the British bull dog- Seldom barks, often bites. Singapore dogs good for show only. All are "scholarly dogs".

You remember the collapse of RBOS Bank in 2008 , the BOE and SFA were the 2 British bulldogs appointed by Gordon Brown for regulating the UK Banks.

They barked at Fred Goodwin , CEO for RBOS but Fred's bark was even louder and so RBOS ignored the regulators and went ahead with takeover of the Dutch bank . The bank subsequently went to the edge of collapse and had to be saved by UK Government

Now RBOS Bank is 90% owned by the Government. RBOS is also mixed up in the LIBOR Manipulation scandal and expects to pay heavy fine.