FII2018: Company chiefs urged to embrace technological revolution

Top CEOs at the opening ceremony of the Future Investment Initiative conference in Riyadh. (AFP)
Updated 24 October 2018

FII2018: Company chiefs urged to embrace technological revolution

  • If companies do not transform with clear strategies, they will be left behind, just like many companies that have failed

RIYADH: Company chief executives must embrace the technological revolution, delegates to the Future Investment Initiative conference were told.

Leaders need to come out of their traditional offices and engage with the community, said Yousef Al-Benyan, vice chairman and chief executive of Saudi Basic Industries Corp. (SABIC), the Saudi petrochemicals giant.

“I don’t look at it wholly from a regional point of view, but I look at it globally,” he said. “Transformation and the technology evolution are going to be very crucial. At the same time, it is going to create challenges for business.”

Companies should keep in mind that if they do not transform themselves with different platforms and clear strategies, they will be left behind, like many companies that had failed, Al-Benyan said.

“I’m not looking at incremental transformation but it has to be a complete transformation otherwise the companies will not be able to truly satisfy their shareholders.”

Al-Benayan also discussed the digital transformation that is changing the petrochemical industry, and how it will drive future growth.

The petrochemical industry is important for the growth of prosperity, Al-Benayan said. “The petrochemical industry is now everywhere in every individual’s life,” he said. 

SABIC is competitive, he said. “We have more than 21 centers globally, supported by more than 2,000 scientists and researchers to make sure that we have up-to- speed positions in our competitive environment.”  

Al-Benayan expressed concern about the future of job creation. The speed of technological innovation was greater than the speed of the transformation of Saudi Arabia’s education system, he said, which would create challenges for Saudi youth.


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.