Hong Kong to make banks liable for deceptive IPOs

The Financial Times reports that Hong Kong’s Securities and Futures Commission wants new rules that would make investment banks criminally responsible for misrepresentations made by firms they help go public.

“Under the plan – which requires approval by Hong Kong’s legislature – liability would depend on whether a sponsor ‘knowingly or recklessly approved a prospectus containing an untrue statement, which was materially adverse’ for investors,” the report says.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.