Understanding the new SFC rules for book building, placing and sponsor coupling

Our webinar took a look at new bookbuilding conduct requirements in Hong Kong and what you’ll need to do if you’re in scope.

The SFC’s aim is to bring Hong Kong regulation in this space in line with global standards and address concerns around potential conflicts of interest, as identified in the latest IOSCO reports. The Commission issued its consultation conclusions on the proposed code of conduct for bookbuilding and placing activities in ECM and DCM transactions in October 2021.

With the new requirements having come into effect in early August 2022, our webinar provided insights into the new requirements and some practical advice on what changes needed to be put in place. These included:

·         Pre-deal considerations

·         Bookbuilding considerations

·         Conflicts of interest management

·         Preventing and detecting market misconduct in primary markets