SFC fines UBS HK$11.55m for regulatory breaches

Further information

Statement of Disciplinary Action

SFC reprimands and fines UBS AG and UBS Securities Asia Limited $11.55 million for regulatory breaches

Issue date: 2021-08-03 16:36:26

The Securities and Futures Commission (SFC) has reprimanded and fined UBS AG and UBS Securities Asia Limited (UBSSAL) (collectively, UBS) $9.8 million and $1.75 million respectively over various regulatory breaches (Notes 1 & 2).

A number of issues concerning UBS’s systems and controls were brought to the SFC’s attention between September 2018 and November 2020 by self-reports from UBS or referrals of findings from the Hong Kong Monetary Authority (HKMA).

The SFC’s investigation found that between May 2004 and May 2018, UBS failed to make proper disclosure of its financial interests in some Hong Kong listed companies covered in its research reports.  The failure was caused by multiple data feed logic errors in a legacy data source used by UBS for tracking its shareholding positions.

The SFC also found that UBS AG failed to:

The SFC considers that UBS failed to act with due skill and care and put in place adequate systems and controls to ensure compliance with the applicable regulatory requirements (Note 4).

In deciding the sanction, the SFC took into account all relevant circumstances, including:



  1. UBS AG is registered to carry on Type 1 (dealing in securities), Type 4 (advising on securities), Type 6 (advising on corporate finance), Type 7 (providing automated trading services) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance (SFO).
  2. UBSSAL is licensed to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts) and Type 4 (advising on securities) regulated activities under the SFO.
  3. The HKMA referred its findings to the SFC following an investigation into UBS AG’s self-reports regarding the telephone recording failures.
  4. Details of the relevant regulatory requirements are set out in the Statement of Disciplinary Action.
News captured as of:2021-08-03 16:36:26

Source: SFC


Sign up for our free newsletter

Recommend Webb-site to a friend

Copyright & disclaimer, Privacy policy

Back to top