Recent public disclosures as to inadequate due diligence by sponsors responsible for IPO and RTO candidates has led to increasing public calls for more regulation and indeed, even for the introduction of criminal penalties against errant sponsors, banks, professionals and brokerage firms in Hong Kong. The jury remains out as to whether or not the introduction of criminal penalties will occur in Hong Kong but it is very clear that an urgent change in the way that due diligence is conducted is needed.