繁

SFAT allows review for Mr Cai Hongping

Issue date: 2021-06-04 16:30:05

The 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 (Notes 1 & 2).

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) (Notes 3 & 4).

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 (Note 5).

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.

End

Notes:

1. Mr Cai was approved to act as an executive officer and a sponsor principal of UBS AG during the period from 28 March 2007 to 2 July 2010 and from 16 April 2007 to 2 July 2010 respectively.  
2. The Reasons for Determination is available on the SFAT’s website (www.sfat.gov.hk).
3. 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.  Please refer to the SFC’s press release dated 14 March 2019.
4. CMS was reprimanded and fined $27 million by the SFC.  Please refer to the SFC’s press release dated 27 May 2019.  Disciplinary action was also taken against CMS’s sponsor principal.  Please refer to the SFC’s press release dated 27 February 2019.
5. “Principal” means an individual that meets the criteria stipulated under the Additional Fit and Proper Guidelines for Corporations and Authorized Financial Institutions applying or continuing to act as Sponsors and Compliance Advisers.  In respect of a listing assignment, a Principal means an individual appointed by a sponsor to supervise the transaction team to carry out a listing assignment.  

Source: SFC