HK regulator acts against E&Y

Hong Kong’s securities regulator said yesterday it had launched legal proceedings against Ernst & Young (E&Y) for failing to produce accounting records related to a Chinese company as specified, the latest auditor to run into trouble over a Chinese client. Ernst & Young claimed it did not have the relevant records on Standard Water, which were held in China by its joint venture partner, Ernst & Young Hua Ming, the SFC said in a statement, adding the auditor then said the documents could not be produced due to restrictions under Chinese law. E&Y was not immediately available to comment.