SINGAPORE Exchange Regulation (SGX RegCo) has barred UOB Kay Hian (UOBKH) from undertaking new mandates to act as an issue manager or full sponsor for initial public offering (IPO) and reverse takeover (RTO) submissions on the local bourse.

This was the outcome after the market regulator deliberated the actions taken against the brokerage firm by the Monetary Authority of Singapore (MAS) and considering the interests of the market, it said in a statement on Tuesday (Dec 27).

MAS on Aug 31 fined UOBKH S$375,000 for business conduct compliance failures. The latter did not adhere to the Securities and Futures (Licensing and Conduct of Business) Regulations, as well as anti-money laundering and countering the financing of terrorism requirements.

The failures were discovered during an inspection, some of which include accepting third-party receipts that “represented a substantial amount of the value of an initial price offering” without conducting adequate due diligence, MAS previously said.

SGX RegCo on Tuesday said its regulatory actions apply to IPO and RTO submissions agreed upon from Aug 31.

For UOBKH to reintroduce activities as a full sponsor, it will be subject to “certain requirements”. A review of SGX RegCo’s requirements will be subject to, among others, UOBKH satisfactorily addressing and fulfilling all of its recommendations, conditions and directions, it added.

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Shares of UOBKH closed flat at S$1.40 on Tuesday.