| No | Nature of Offence | Offender(s) |
Facts of Case | Action taken |
|---|---|---|---|---|
| RECEIVERS APPOINTED | ||||
| 1. | Failure to maintain clients’ monies in the clients’ designated “trust accounts” | Metrowangsa Asset Management Sdn Bhd (MAM) | MAM wrongfully used its clients’ funds to pay for debts unrelated to the client. MAM also failed to maintain proper clients’ trust accounts as required by the Securities Industry Act 1983. | A court order was obtained to appoint a receiver to take-over clients’ monies and property under MAM’s management. |
| COMPANY LICENCE REVOKED | ||||
| 2. | Not fit and proper to be licensed | Metrowangsa Asset Management Sdn Bhd (MAM) | The company transferred its clients’ funds to be managed by an unlicensed entity and allowed unlicensed persons to carry out the functions of a fund manager’s representative. | Fund manager’s licence and futures fund manager’s licence were revoked. |
| Metrowangsa Advisory Sdn Bhd | Being a related company to MAM, MASB was found to be unfit and proper to continue its business efficiently, honestly and fairly and with integrity and professional skill. | Investment adviser’s licence was revoked. | ||
| INDIVIDUAL LICENCE REVOKED/SUSPENDED | ||||
| 3. | Not fit and proper to be licensed |
|
As CEO and Executive Director of MAM, Dr Ghazali and Mohd Abdul Wahab were responsible for causing their clients’ funds to be managed by an unlicensed entity and in turn invested in unregulated financial instruments. | Fund manager’s representative’s licence was revoked. |
| Che Hisham Endud | Che Hisham was licensed to provide investment advice, but went beyond the scope of his licence to manage clients’ funds as well. | Che Hisham’s investment adviser’s licence was revoked. | ||
| PUBLIC REPRIMAND | ||||
| 4. | Companies that depart from its core business to venture into unrelated business activities without the SC’s approval | Board of Directors,Widetech (Malaysia) Bhd:
|
In order to safeguard investors’ interests, companies which had been approved for listing by the SC should not be used as a vehicle for venturing into other activities not related to its original core business. Instead, they should give priority to the expansion of its existing business, at least within three to five years of listing.
Widetech was found to have diversified into unrelated business areas without the SC ’s prior approval. |
Public reprimand was issued. |
