The Securities and Exchange Commission announced that Industrial and Commercial Bank of China Financial Services, a wholly owned subsidiary of Industrial and Commercial Bank of China, will pay more than $42 million to settle charges for the improper handling of “pre-released” American Depositary Receipts (ADRs).
The settlement “marks the largest recovery against a broker in the SEC’s ongoing investigation of ADR practices, which thus far has resulted in settlements with 10 financial institutions exceeding $414 million,” the SEC said. In a separate action, Industrial and Commercial Bank of China Financial Services (ICBCFS) pleaded guilty to an antitrust charge and was sentenced to pay a criminal fine of more than $3 million, the Department of Justice announced.
