The Securities and Futures Commission (SFC) reprimanded and fined Ever-Long Securities Company Limited $3 million for its failures as the sole sponsor in Coastal Corporation Limited’s 2016 listing application to the Growth Enterprise Market of the Stock Exchange of Hong Kong. Ever-Long conducted inadequate due diligence on key issues, including a leasing arrangement central to Coastal’s revenue, the legality of operations under Singapore regulations, and inconsistencies in financial and operational disclosures. It failed to disclose material risks, such as the unlicensed status of a top customer, and did not ensure the completeness of the Application Proof. The SFC deemed Ever-Long’s conduct below expected standards, though it considered mitigating factors like the firm’s cooperation and financial position when determining sanctions.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR221
