HK plans new 'code of conduct' for equity and debt deals

HONG KONG: Hong Kong's markets regulator plans to unveil new guidelines for investment banks working on equity and debt offerings that will include a framework for how they charge clients, three sources with knowledge of the matter told Reuters.

The Securities and Futures Commission (SFC) has asked banks to give feedback on several aspects of how transactions work by Friday, the sources said, declining to be named as they were not authorised to speak to media.

While the SFC has several sets of guidelines governing how banks and brokers handle transactions, it is seeking to frame a detailed code of conduct for capital raisings for the first time as part of recent efforts to tighten supervision.

As part of the latest move, the regulator wants to create a proper framework setting out how and when the fees investment banks charge for managing equity and debt issuances, should be calculated, two sources with direct knowledge said.