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Hong Kong’s SFC Takes Legal Action Against AMTD for Suspected IPO Misdeeds

The Securities and Futures Commission (SFC) of Hong Kong has initiated legal proceedings against AMTD Global Markets Limited, now known as Orientiert XYZ Securities Limited, and several of its former executives.

This action, initiated at the Court of First Instance, seeks to address the company’s and its former leaders’ failure to comply with regulatory notices during investigations into initial public offerings (IPOs) in which they were involved.

The investigations by the SFC centered around allegations of deceptive practices and providing misleading information in IPOs. AMTD, in its roles as bookrunner, lead manager, and underwriter, was implicated in these activities.

The executives under scrutiny include former responsible officer Lo Chi Hang, former director and manager-in-charge Philip Yau Wai Man, and former emergency contact person and complaints officer See Hiu Lun.

Despite requests from the SFC, AMTD did not fully cooperate by providing necessary records related to their IPO activities. Furthermore, the former executives failed to attend mandatory interviews after receiving official notices from the SFC.

The Court of First Instance will determine if AMTD and its ex-executives had any valid reason for their non-compliance. If found without a reasonable excuse, the court can compel AMTD to surrender the requested records and mandate the former executives to participate in interviews. Additionally, the court holds the authority to impose penalties equivalent to contempt of court for non-compliance.