CCB International Capital Limited fined $24 million for sponsor due diligence failures

Julia CharltonPartner, Charltons

Introduction 

CCB International Capital Limited (CCBIC) has been reprimanded and fined $24 million by the Securities and Futures Commission (the SFC) for its failure to discharge its duties as a sole sponsor in the listing application of Fujian Dongya Aquatic Products Co., Ltd (Fujian Dongya).  In particular, CCBIC breached paragraph 17 of the Code of Conduct for Persons Licensed by or Registered with the SFC (Code of Conduct) for its failure to:

  1. perform all reasonable due diligence on Fujian Dongya prior to submitting a listing application on its behalf;
  2. carry out proper due diligence interviews with Fujian Dongya’s customers; and
  3. keep a proper audit trail/written record of the work conducted regarding the due diligence for the listing application of Fujian Dongya.

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