Standard Chartered has said in its third quarter results that the Hong Kong Securities and Futures Commission “intends to take action against Standard Chartered Securities” for an initial public offering that it jointly sponsored in 2009.

Action by the regulator could mean “financial consequences” for the London-based bank, writes the FT’s Don Weinland.

Last week, UBS said it faced an investigation by the SFC into the Swiss bank’s role sponsoring company stock market listings that could result in a temporary ban from providing corporate finance advisory services.

Banks sponsoring IPOs in Hong Kong are legally liable for claims made in prospectuses and the SFC has previously warned investment bankers that they need to do better due diligence on companies when preparing for a float.

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