Emirates reaches agreement with Rolls-Royce on A380 engines

An Airbus A380 takes off at the International Paris Airshow in Le Bourget, north of Paris in this June 18, 2015 file photo. (AFP)
Updated 30 December 2016

Emirates reaches agreement with Rolls-Royce on A380 engines

DUBAI: Dubai’s Emirates said Thursday it has reached an agreement with Rolls-Royce over a “technical issue” relating to the engines of Airbus’s A380 superjumbo, and confirmed receiving one plane this week.
The carrier also said it “will continue to receive deliveries of both A380s and (Boeing) 777s in 2017.”
“Emirates can confirm that we have come to an agreement with Rolls-Royce on the technical issue relating to engines for our A380s. We have received delivery of our first Rolls-Royce powered A380s this week,” a spokesperson told AFP.
It will take delivery of two more units “before the end of this year.”
Airbus said Wednesday it delivered the first A380 to Emirates equipped with a Rolls-Royce engine, a day after it said it was postponing for a year the planned delivery of 12 units.
The delay was linked to the Emirates’s wish to purchase the finest Rolls-Royce engines, an informed source said.
“We continue to work closely with Airbus and Emirates Airline to satisfy their requests,” a Rolls-Royce spokesman told AFP on Wednesday.
In November, Emirates complained of “technical difficulties” with the Trent 900 engines produced by the British firm for the A380.
In April 2015, Airbus selected Rolls-Royce for the lucrative deal to provide the engines for 50 of its A380s that was worth a record at the time of $9.2 billion.
Emirates, the biggest client for superjumbos, took delivery of its A380 in November and has ordered 142 in total.
A380s with the Rolls-Royce motor are already being operated by other airlines such as Qantas and Singapore Airlines.


UBS fined $51 million by Hong Kong regulator for overcharging clients

Updated 11 November 2019

UBS fined $51 million by Hong Kong regulator for overcharging clients

  • Hong Kong regulator’s investigation exposed ‘serious systemic internal control failures’ at the bank
  • In March, the Securities and Futures Commission banned UBS from leading initial public offerings in Hong Kong for a year

HONG KONG: Swiss bank UBS was fined HK$400 million ($51.09 million) by Hong Kong’s securities regulator for overcharging up to 5,000 clients for nearly a decade, the watchdog said on Monday.
The Hong Kong Securities and Futures Commission (SFC) said in a statement that an investigation found UBS had overcharged clients on ‘post-trade spread increases’ and charges in excess of standard disclosures and rates between 2008 and 2017.
THE SFC said the investigation exposed ‘serious systemic internal control failures’ at the bank. UBS had failed to disclose conflicts of interests and had overcharged some clients in ‘opaque’ trades, it said.
The overcharging affected 5000 Hong Kong managed client accounts in about 28,700 transactions, it said.
UBS has also agreed to repay the clients HK$200 million, the SFC said.
The regulator said the over-charging occurred in the bank’s wealth management division on bond and structured notes transactions.
UBS was found to have increased the spread charged after the execution of a trade without the clients’ knowledge, it said.
In the statement, the SFC said UBS was also found to have falsified some account statements which were issued to financial intermediaries who were authorized to trade for the clients to “conceal the overcharges.”
UBS said the issues were ‘self-reported’ to the SFC and the results found were against the bank’s standard practice.
“The relevant conduct predominantly relates to limit orders of certain debt securities and structured note transactions, which account for a very small percentage of the bank’s order processing system,” the bank said in a statement.
SFC chief executive Ashley Alder said while each “overcharge represented a fraction of each trade” the bank’s “misconduct involved decisions and a pervasive abuse of trust resulting in significant additional revenue for UBS to which it was not entitled.”
In March, the SFC banned UBS from leading initial public offerings in Hong Kong for a year after it found the bank, and some of its rivals, had failed to carry out sufficient due diligence on a number of deals.
UBS was fined HK$375 million while Morgan Stanley was fined HK$224 million, Merrill Lynch HK$128 million and Standard Chartered (StanChart) HK$59.7 million, all for failures when sponsoring, or leading, public market floats.