Administrative Actions in 2013

No.

Nature of Misconduct

Parties Involved

Brief description of misconduct

Action Taken

Date of Action

1.

Breach of Section 273(1)(d) and (e) of the Capital Markets and Services Act 2007 (CMSA)

Universal Trustee (Malaysia) Berhad

  • Failure to inform the SC of the issuer’s failure to remedy breaches of the trust deed; and

  • Failure to call for a meeting of bondholders and placing before such meeting, proposals for the protection of the interest of the bondholders as appropriate and obtain their directions in relation to the same.

Reprimand

15 July 2013

2.

Breach of Section 33B of the Securities Commission Act 1993 and Paragraph 6(4) of the Malaysian Code on Take-Overs and Mergers 1998.

(a)

Superior Pavillion Sdn Bhd;

(b)

SM Nasarudin SM Nasimuddin;

(c)

SM Faliq SM Nasimuddin; and

(d)

Dato’ Ahmad bin Ibrahim (collectively referred as Concert Parties)

Failure of the Concert Parties to carry out a mandatory offer for the remaining shares in Kumpulan Jetson Berhad

(a)

Reprimand; and

(b)

Penalty of RM500,000

20 May 2013

3.

Breach of Section 355 of the Capital Markets and Services Act 2007 for failure to comply with:

(a)

the Securities Commission’s:

  • Guidelines on Prevention of Money Laundering & Terrorism Financing for Capital Market Intermediaries (“AML Guidelines”);

  • Licensing Handbook;

  • Compliance Guidelines for Futures Brokers; and

(b)

the Rules of the Bursa Malaysia Derivatives Berhad.

Okachi (Malaysia) Sdn Bhd (a Capital Markets Services Licence holder carrying out dealing in derivatives)

(a)

Breach of provisions of the AML Guidelines:

  • Poor adoption of Know-Your-Client requirements

  • Failure to develop an effective system to detect suspicious transactions; and

  • Failure to conduct adequate staff training and perform independent audit on Anti-Money Laundering/Counter Terrorism Financing compliance programmes.

(b)

Absence of any evaluative and supervisory review on the compliance of the AML Guidelines.

(a)

Penalty of RM200,000

(b)

Directive to attend at least two (2) Anti-Money Laundering and Anti-Terrorism Financing Act 2001 training programmes within the next twelve (12) months for Okachi Sdn Bhd’s Board of Directors and Compliance Officer.

10 May 2013

4.

Breach of Section 356 of the Capital Markets and Services Act 2007 for failure to comply with the Securities Commission’s Guidelines on:

(a)

Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries; and

(b)

Market Conduct and Business Practices for Stockbrokers and Licensed Representatives

TA Securities Holdings Berhad (a Capital Markets Services Licence holder carrying out dealing in securities)

(a)

Failure to have and implement an effective system to detect and report suspicious transactions

(b)

Failure to provide adequate employee training and to conduct independent audit on compliance programmes

(c)

Failure to have in place adequate Customer Due Diligence processes and “know-your-client” requirements

Penalty of RM150,000

25 April 2013

Note: All administrative actions taken by the Securities Commission are subject to the aggrieved person’s right to appeal to the Commission for a review of the decision under section 146 of the Securities Commission Act 1993 or section 364 of the Capital Markets & Services Act 2007 within 30 days of the decision at first instance.