Updated

Swiss bank UBS says it's being investigated by Hong Kong regulators over its work on some initial public offerings on the southern Chinese financial center's stock market.

UBS also said Friday that the city's Securities and Futures Commission notified it this month of plans to take action against the bank and certain unnamed employees over its work as a sponsor of those IPOs.

It warned that possible penalties include fines and restitution orders and possible suspension from providing corporate finance advisory services in Hong Kong.

The information was disclosed in the bank's latest quarterly earnings statement.

Hong Kong tightened up its stock listing rules three years ago by making the banks responsible for preparing IPO documents and carrying out due diligence liable for misleading information.