• Criticized Nomura International (HK) Limited, for breaches of HK takeover code.
• Also cited Lee Yuen Yee, whilst acting as financial adviser to West China Cement.
• Lee is a licensed representative of Nomura Hong Kong, for the regulated activity.
• Work done in relation to possible mandatory offer for the shares of the company.
• Nomura fell within the definition of "associate" of offeree company, for purposes
  of HK takeovers code on engagement as West China financial adviser November 2015.

Alleged Violations

• Bank did not comply with limits on issuance and distribution of research reports.
• On publishing five credit commentaries, and three weekly wraps, on West China.
• Research contained profit forecasts, which were not reported by Lee as required.
• Note 4 to Rule 8.1 of takeovers code provides that a financial adviser to offeree
  company should stop issuing research reports on it, except if SFC prior consent.
• Any research reports with profit forecasts must comply with reporting per code.

Enforcement

• Regulator cited public criticism of Nomura HK for their breach of takeovers code.
• In determining sanction, SFC took account of Nomura HK and Lee’s cooperation.
• As well as self-reporting of the breach, and the remedial measures implemented.