The SC deploys a broad range of enforcement tools to address identified breaches of securities law, foster good
conduct and lawful behaviour among capital market participants as well as ensure credible deterrence.
Key outcomes |
2023 | 2022 |
---|---|---|
Preliminary investigation | ||
No. of cases reviewed for enforcement action |
43 |
35 |
No. of offences reviewed | 76 | 53 |
Investigation | ||
No. of investigations commenced | 19 | 13 |
No. of active investigations | 55 | 49 |
No. of raids conducted | 10 locations | 2 locations |
Criminal actions | ||
New criminal actions commenced | 2 persons (involving 12 charges) | 6 persons (involving 47 charges) |
No. of criminal actions completed with no pending appeal | 7 (involving 14 persons) | 3 (involving 5 persons) |
No. of ongoing criminal cases | 21 (involving 32 persons) | 21 (involving 33 persons) |
No. of persons convicted/conviction affirmed | 5 | 10 |
Custodial sentences imposed | One day to three years | One day to two years |
Total value of fines imposed by the Court | RM8.675 million | RM12.958 million |
Compounds | ||
No. of compounds issued | 2 (Involving 2 persons) | 6 (involving 5 persons) |
Total compounds imposed | RM269,900 | RM16 million |
Civil actions | ||
No. of civil actions commenced including issuance of Letter of Demands | 15 | 8 |
No. of civil actions completed | 3 (involving 15 defendants) | 3 (involving 3 defendants) |
No. of ongoing civil cases | 11 (involving 21 defendants) | 15 (involving 23 defendants) |
No. of civil actions completed successfully | 3 (involving 15 defendants) | 3 (involving 3 defendants) |
Total value of civil penalties imposed by the Court | RM4,813,123 | RM33,741,544 |
Regulatory settlements | ||
No. of regulatory settlements (before the commencement of any court action) |
6 (Involving 6 persons) |
6 (involving 6 persons) |
Total disgorgement | RM13.83 million | RM4.58 million |
Restitution | ||
No. of investors restituted |
119 | 284 |
Amount restituted | RM301,208 | RM1,532,294.70 |
Administrative actions |
||
No. of sanctions imposed:
|
140 (44) (80) (16) |
118 (39) (72) (4) |
Total value of penalties imposed | RM19.530 million | RM11.999 million |
Infringement Notices | ||
No. of Infringement Notices issued | 124 | 76 |
Nature of offence |
No. of breaches reviewed |
---|---|
Breaches related to disclosure |
14 |
Breach of the SC’s LOLA Guidelines |
14 |
Securities fraud |
12 |
Corporate misconduct* |
8 |
Breach of Bursa Rules, Directive or Listing Requirements |
5 |
Unlicensed activities |
5 |
Breach of SICDA |
4 |
Breach of the SC’s other Guidelines# |
4 |
Breach of the SC’s Licensing Handbook/Condition |
3 |
Market manipulation |
2 |
Abetment |
2 |
Non-compliance of Investigating Officer’s Notice |
2 |
Insider trading |
1 |
TOTAL | 76 |
Jurisdictions |
No. of requests |
---|---|
Hong Kong |
9 |
Singapore |
6 |
Australia |
3 |
United Kingdom |
3 |
British Virgin Island |
2 |
United States |
2 |
Canada |
1 |
Denmark |
1 |
Ireland |
1 |
Japan |
1 |
Pakistan |
1 |
TOTAL | 30 |
Types of actions |
Court | No. of cases | No. of individuals |
---|---|---|---|
Criminal Action |
Sessions Court |
8 | 13 |
High Court |
7 | 10 | |
Court of Appeal | 6 | 9 | |
Civil Action | High Court |
9 | 19 |
Court of Appeal |
1 | 1 | |
Federal Court | 1 | 1 |
Type of persons | Sanctions imposed | |||||
---|---|---|---|---|---|---|
Reprimand | Penalty | Restitution | Directive | Revocation of licence | Suspension of licence | |
Persons acting in concert | 11 | 1 | 1 | - | 1 | - |
Registered persons | 18 | 2 | - | 2 | - | - |
Directors of registered persons | 6 | 2 | - | - | - | - |
Licensed persons | 10 | 16 | - | 1 | - | - |
Other entities/ individuals | 35 | 23 | - | 12 | - | - |
TOTAL | 80 | 44 | - | 16 | - | - |
Type of Infringement Notices | No. issued | |
---|---|---|
2023 | 2022 | |
Supervisory letters with infringement | 40 | 33 |
Warning letters | 59 | 13 |
Non-compliance letters | 20 | 24 |
Notice of Cease and Desist | 5 | 6 |
TOTAL | 124 | 76 |
Mitigating Systemic Risks And Promoting Financial Stability
Enhanced Risk Governance Framework
In 2021, the SC-wide risk governance framework was enhanced as part of an overall initiative to have an effective integrated and predictive risk surveillance to maintain regulatory agility.
The structured risk governance framework integrated the wider spectrum of risks such as technology, cyber and conduct risk at the SC’s Systemic Risk Oversight Committee (SROC) and Accounting, Market and Corporate Surveillance Committee (ACMS).
Intensified surveillance
The SC continued to intensify its surveillance of systemic risk to maintain market resilience and stability. Regular SROC engagements were held to deliberate concerns emanating from various segments across the capital market. Domestic equity and bond market, foreign fund flows and trade participation continued to be monitored closely for potential stress points.
In addition, measures and economic stimulus packages introduced by the government to weather the impact of COVID-19, market trading conduct and the financial position of listed companies were among the focus areas for discussion.
Thematic assessments
The SC also conducted thematic assessments covering investors’ fund flows, the position of firms, and policy decisions to ascertain the possible impact on the capital market. In 2021, the SC reviewed and enhanced its crisis indicators on potential emerging risks in the
capital market.
The enhanced crisis indicators provided a reference point for escalation to SROC when the identified indicators and triggers materialised and ensured prompt response to manage and prevent any issues of concern that might lead to a systemic crisis.
Joint regulatory discussions
In 2021, the SC conducted frequent joint regulatory discussions with other authorities such as Bank Negara Malaysia (BNM) and Labuan Financial Services Authority (Labuan FSA) to identify systemic risk concern areas within the financial and capital markets in Malaysia.
Monitoring of various components of the capital market
The SC continued its efforts to undertake a methodological and integrated approach to ensure any potential systemic risk was being monitored, mitigated, or managed. Figure 1 highlights the findings from the following risk assessments on the various components of the capital market.