Sponsors should maintain best practices in IPO engagements in light of increased enforcement action and regulatory scrutiny from the SFC.

Key Points:

..In March 2019, the Hong Kong securities regulator, the Securities and Futures Commission, issued record-breaking fines (together with other disciplinary actions) against several sponsors on Hong Kong IPOs dating back to 2009.

..This enforcement action indicates the SFC’s focus on improving the standard of listing sponsors’ work and coincides with other sponsor-related regulatory pronouncements, notably the SFC’s report on the thematic review of sponsors issued in March 2018.