UOB Kay Hian says it has taken “remedial measures to enhance its internal policies and controls” in light of the announcement made by the Singapore Exchange Regulation (SGX RegCo).
The market regulator, on Dec 27, 2022, announced that it had prevented the brokerage from undertaking new mandates as an issue manager. UOB Kay Hian was also prevented from acting as a full sponsor for any companies looking to list on SGX’s Mainboard and Catalist board, as well as being the full sponsor for any reverse takeover (RTO) submissions for the time being.
The brokerage reiterated its statement in its previous announcement on Sept 2, 2022, after the Monetary Authority of Singapore (MAS) imposed a composition penalty of $375,000 on UOB Kay Hian on Aug 31, 2022. UOB Kay Hian was fined for its failure to comply with business conduct and anti-money laundering and countering the financing of terrorism requirements under MAS Notice SFA04-N02. The failures occurred between 2012 to 2018.
In its Jan 4 statement, UOB Kay Hian added that it has “appointed an independent external party to evaluate these measures”. It will also “work with the external party to implement recommendations raised and ensure that the remedial measures are effective in addressing MAS & SGX’s concerns”.
The impact of these requirements is not expected to be material to the group’s financial results for FY2023.
Shares in UOB Kay Hian closed 1 cent lower or 0.71% down at $1.40 on Jan 4.