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SFC bans Ivan Chan Chuk Cheung for seven years for IPO sponsor failures

Issue date: 2023-10-11 16:30:00

The Securities and Futures Commission (SFC) has prohibited Mr Ivan Chan Chuk Cheung, a former responsible officer (RO) of Changjiang Corporate Finance (HK) Limited (CJCF), from re-entering the industry for seven years from 10 October 2023 to 9 October 2030 for failing to discharge his supervisory duties as a sponsor principal in charge of five listing applications (Five Listing Applications) (Notes 1 & 2).

The disciplinary action follows the earlier sanctions against CJCF for serious and extensive failures in discharging its duties as the sponsor in six listing applications, including the Five Listing Applications.  The Five Listing Applications concerned Pacific Infinity Resources Holdings Limited (Pacific Infinity), Perpetual Power Holdings Limited (Perpetual Power), Van Chuam International (Cayman) Limited (Van Chuam), Rising Sun Construction Holdings Limited (Rising Sun) and Byleasing Holdings Limited (Byleasing) (Notes 3 to 5).

The SFC found that the failures committed by CJCF, being the sole sponsor in the Five Listing Applications, were attributable to neglect on the part of Chan.

Specifically, Chan failed in his role as the sponsor principal to:

• exercise due skill, care and diligence in handling the Five Listing Applications;
• diligently supervise the transaction teams in carrying out the sponsor work; and
• ensure the maintenance of appropriate standards of conduct by CJCF.

In deciding the disciplinary sanction, the SFC has taken into account all relevant circumstances, including:

• the gravity of Chan’s failures as a sponsor principal;
• the need to send a strong deterrent message to the industry and market that the SFC does not tolerate failures of sponsor and sponsor principal;
• Chan’s cooperation in resolving the SFC’s concerns; and
• his otherwise clean disciplinary record with the SFC.

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Notes:

1. Chan has been accredited to CJCF and approved to act as its RO in respect of its Type 6 (advising on corporate finance) regulated activity from 29 June 2012 to 5 December 2018.  Chan is currently not licensed by the SFC.
2. Chan was also approved as a sponsor principal of CJCF from 29 June 2012 to 5 December 2018.  In respect of a listing application, a sponsor principal means an individual appointed by a sponsor to supervise the transaction team to execute a listing application.  See paragraph 17.15(l) of the Code of Conduct for Persons Licensed by or Registered with the SFC.
3. The SFC has reprimanded and fined CJCF $20 million, as well as partially suspended its licence to the extent that the firm shall not act as a sponsor for listing applications on The Stock Exchange of Hong Kong Limited (SEHK) of any securities.  Please refer to the SFC’s press release dated 21 August 2023.
4. CJCF was the sole sponsor in the applications of Pacific Infinity, Van Chuam and Rising Sun to list on the Main Board of the SEHK and in the applications of Perpetual Power and Byleasing to list on the Growth Enterprise Market of the SEHK.
5. The SEHK rejected Pacific Infinity’s application and returned Byleasing’s application.  The applications of Perpetual Power, Van Chuam and Rising Sun lapsed six months after their respective submissions.

Source: SFC