Goldman Sachs has been reprimanded by the Hong Kong regulator, the Securities and Futures Commission, after it breached takeover rules in a $5bn deal by publishing research and trading in the shares of a client it was advising. The regulator said that while its investigation had found no evidence to suggest any wrongdoing on Goldman's part, there were "reasonable grounds for concern". The regulator said the bank's conduct in the takeover of Wing Hang Bank, its client, by Singapore OCBC "fell far short of the standards expected of a financial adviser", adding that the "breaches suggest a significant breakdown in the compliance policies and procedures of the bank".
Goldman Sachs has been reprimanded by the Hong Kong regulator, the Securities and Futures Commission, after it breached takeover rules in a $5bn deal by publishing research and trading in the shares of a client it was advising. This marks the first public censure in Hong Kong of a large western bank for dealmaking advice and will be seen as embarrassing for Goldman Sachs. The regulator said the bank's conduct in the takeover of Wing Hang Bank, its client, by Singapore OCBC "fell far short of the standards expected of a financial adviser", adding that the "breaches suggest a significant breakdown in the compliance policies and procedures of the bank".