Administrative Actions in 2017 - Administrative Actions

Administrative Actions in 2017

No.	Nature of Misconduct	Parties Involved	Brief description of misconduct	Action Taken	Date of Action
1.	Breach of Section 354(1)(a) of the Capital Markets and Services Act 2007(“CMSA”) read together with: Regulation 4(1) of the Securities Industry (Compliance with Approved Accounting Standards) Regulations 1999 (“SIR”); and Section 369(b)(B) of the CMSA	1. TRIVE Property Group Berhad (“TRIVE”); and 2. Individual directors of TRIVE in relation to the Audited Financial Statements (“AFS”) for financial period ended 31 July 2014 (“AFS 2014”): Wong Kok Seong Thu Shoon Shien Dato’ Hj Mohamad Amin Mohamad Salleh Dato’ Sri Dr Pang Chow Huat Zarul Ikhwan Zarul Ahmad	TRIVE and its directors, in preparing and presenting TRIVE’s AFS 2014, failed to perform an impairment assessment on its development expenditure amounting to RM21.1 million as at 31 July 2014 in accordance with the approved accounting standards, namely Malaysian Financial Reporting Standards (MFRS) 136: Impairment of Assets, and thereby furnishing false or misleading information regarding the AFS 2014 to SC and Bursa Malaysia Securities Berhad in relation to the non-impairment of the DE.	Against TRIVE: The SC reprimanded TRIVE and directed TRIVE to: Appoint an external Auditor (who is registered with the Audit Oversight Board) to evaluate the adequacy of the scope, functions, competency and resources of TRIVE’s financial reporting function and make the appropriate recommendation to improve TRIVE’s Financial Reporting Function (“Assessment of Financial Reporting Function”); TRIVE’s Audit Committee (“AC”) is to assess the external Auditor’s findings on the Assessment of Financial Reporting Function and make the appropriate recommendations to the Board to improve its Financial Reporting Function; and Highlight in its next audited financial statements and announce to Bursa Malaysia the following: the appropriate action TRIVE has taken, given the CMSA breaches highlighted above; and the actions that the AC has taken in addressing the SC’s directive in relation to the CMSA breaches highlighted above. Against individual directors of TRIVE: The SC reprimanded the following directors and imposed a fine on each of the directors, as follows: Wong Kok Seong – RM539,000 Thu Shoon Shien – RM539,000 Dato’ Hj Mohamad Amin Mohamad Salleh – RM539,000 Dato’ Sri Dr Pang Chow Huat – RM465,500 Zarul Ikhwan Zarul Ahmad – RM465,500 On 11 April 2018, after giving due consideration to the appeal, the Commission decided to maintain its decision in respect of the breaches and the respective quantum of monetary penalties imposed.	30 November 2017
2.	Breach of section 356(1)(a) read together with section 61(4) of the Capital Markets and Services Act 2007 (“CMSA”) for failure to comply with the conditions of Capital Market Services Representative Licence (“CMSRL”) as provided in Paragraph 7.03 of the Licensing Handbook.	Ng Ee Fang (“NEF”) as holder of a CMSRL carrying out the regulated activity of dealing in securities.	Failure to disclose pertinent information, ensure the trading clerk refrains from undertaking licensed activity and supervise the conduct of the trading clerk. As a result, the SC finds NEF failed to comply with the conditions of her licence which requires her to remain fit and proper at all times and to carry out her licensed regulated activity efficiently and fairly as provided in Paragraph 7.03 of the Licensing Handbook.	Reprimand	27 November 2017
3.	Breach of section 356(1) of the Capital Markets and Services Act 2007 (“CMSA”) read together with Paragraphs 6.2(a) and (b) of the Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries (“AML Guidelines”)	TA Investment Management Berhad (“TAIM”)	Failure to respond in a timely manner to the respective law enforcement agencies’ Orders issued pursuant to Section 48(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.	Penalty of RM180,000	19 September 2017
4.	Breach of section 354(1)(a) read together with section 58(1) of the CMSA	Mohd Faizal Jamaluddin (“Faizal”)	Carrying out the regulated activity of fund management without holding a licence when he accepted monies from third parties and traded in equities and futures on behalf of the third parties	Directive to restitute investors who had deposited monies into a named investment bank (“Investment Bank”) whose monies were subsequently designated into Faizal’s securities and derivatives account with the Investment Bank. The restitution is to be made as follows: from all cash available (including interest) amounting to RM157,115.70 as at 14 Sept 2017 from Faizal’s equity and derivatives trading account (“Restitution Sum”); by Faizal issuing a written instruction to the Investment Bank within fourteen business days, instructing the Investment Bank to transfer the Restitution Sum to a trust account to be specified by the SC; and forwarding a copy of the written instruction to the Investment Bank to the SC as soon as it has been delivered to the Investment Bank.	9 October 2017
5.	Breach of Section 365(1)(a) of the Capital Market and Services Act 2007 (CMSA) read together with Paragraph 4.17, Section B, Part 1 of the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.	Affin Hwang Asset Management Berhad (“Affin Hwang”), a holder of Capital Market Services License for dealing in securities restricted to unit trust, fund management and dealing in Private Retirement Scheme.	Delay of 1 business day in submitting the monthly statistical returns of wholesale fund.	SC imposed a penalty of RM1,000 against Affin Hwang	6 September 2017
5.		Fortress Capital Asset Management (M) Sdn Bhd (“Fortress Capital”), a holder of Capital Market Services License for fund management.	Delay of 1 business day in submitting the monthly statistical returns of wholesale fund.	SC imposed a penalty of RM1,000 against Fortress Capital	6 September 2017
6.	Breach of Section 65(1)(d) of the Capital Market and Services Act 2007 (CMSA) for being an undischarged bankrupt within Malaysia.	Chin Wai Thoe (“Chin”) as holder of a Capital Markets Services Representative’s Licence (“CMSRL”) carrying out the regulated activities of dealing in securities.	Chin was adjudged a bankrupt on 15 July 2016. As a result, the SC finds that Chin is no longer fit and proper to continue to be licenced as a CMSRL.	Revocation of his CMSRL for the regulated activities of dealing with securities following Section 72 (2)(b)(i) read together with Section 65 (1)(d) of the CMSA	6 July 2017
7.	Breach of section 354(1)(a) read together with section 215(1)(a)(A) of the Capital Markets and Services Act 2007 (“CMSA”)	Telent Outdoor (Hong Kong) Technology Co., Ltd. (“Telent”)	Submitted the following false information to the SC: the Audited Financial Report of Fuxin Telent (Fujian) Outdoor Products Co., Ltd. (a wholly owned subsidiary of Telent)(“Fuxin”) for the financial year ended 31 March 2014 which shows cash and bank balances of RMB91,360,000-00; and the Pro Forma Consolidated Financial Position of the Telent Group of companies, in relation the cash and bank balances of RMB149,567,000-00, in relation to the proposed listing of Telent onto Bursa Malaysia Securities Berhad.	Reprimand	21 July 2017
8.	Breach of section 354(1)(a) read together with section 215(1)(a)(A) of the CMSA	Hui Chi Keung	As a promoter of Telent, caused to be submitted the following false information to the SC: the Audited Financial Report of Fuxin for the financial year ended 31 March 2014 which shows cash and bank balances of RMB91,360,000-00; and the Pro Forma Consolidated Financial Position of the Telent Group of companies, in relation the cash and bank balances of RMB149,567,000-00, in relation to the proposed listing of Telent onto Bursa Malaysia Securities Berhad.	Reprimand; and A permanent moratorium from: being a promoter for any corporate proposal submitted to the SC; and being involved in any corporate proposals submitted to the SC where he would emerge as a major shareholder of a listed company in Malaysia	21 July 2017
9.	Breach of section 354(1)(a) read together with section 215(1)(a)(A) of the CMSA	Hui Tang Tat	As a promoter of Telent, caused to be submitted the following false information to the SC: the Audited Financial Report of Fuxin for the financial year ended 31 March 2014 which shows cash and bank balances of RMB91,360,000-00; and the Pro Forma Consolidated Financial Position of the Telent Group of companies, in relation the cash and bank balances of RMB149,567,000-00, in relation to the proposed listing of Telent onto Bursa Malaysia Securities Berhad.	Reprimand; and A permanent moratorium from: being a promoter for any corporate proposal submitted to the SC; and being involved in any corporate proposals submitted to the SC where he would emerge as a major shareholder of a listed company in Malaysia	21 July 2017
10.	Breach of Section 65(1)(d) of the Capital Market and Services Act 2007 (CMSA) for being an undischarged bankrupt within Malaysia.	Abd Malik Bin Abu Bakar as holder of a Capital Markets Services Representative’s Licence (“CMSRL”) carrying out the regulated activities of dealing in securities.	Abd Malik adjudged a bankrupt on 20 October 2016. As a result, the SC finds that Abd Malik is no longer fit and proper to continue to be licenced as a CMSRL.	Revocation of his CMSRL for the regulated activities of dealing with securities following Section 72 (2)(b)(i) read together with Section 65 (1)(d) of the CMSA	18 April 2017
11.	Breach of section 354(1)(b)(ii) of the Capital Markets and Services Act 2007 read together with paragraphs 4.04 and 4.05, Section B, Part 2 of the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.	OCBC Bank (Malaysia) Berhad (“OCBC”)	OCBC, an issuer of structured products, submitted the monthly post-issuance reports for the Dual Currency Yield Enhancement Investment 15 and the Structured Products Programme 2, three days after the due date.	Penalty of RM6,000.00	10 April 2017
12.	Breach of section 65(1)(d) of the Capital Markets and Services Act 2007 (“CMSA’) for being an undischarged bankrupt within Malaysia.	Norhashmilaidi bin Hashim (“Norhashmilaidi”) as holder of a Capital Markets and Services Representative’s Licence (“CMSRL”) carrying out the regulated activity of investment advice.	Norhashmilaidi was adjudged a bankrupt on 9 July 2015. As a result, the SC finds that Norhasmilaidi is no longer fit and proper to continue to be licenced as a CMSRL.	Revocation of his CMSRL for the regulated activity of investment advice under section 72(2)(b)(i) read together with section 65(1)(d) of the CMSA.	27 March 2017
12.		Ngan Piang Heng @ Ngam Siong Fook (“Ngan”) as holder of a CMSRL carrying out the regulated activity of dealing in securities.	Ngan was adjudged a bankrupt on 12 October 2015. As a result, the SC finds that Ngan is no longer fit and proper to continue to be licenced as a CMSRL.	Revocation of his CMSRL for the regulated activity of dealing in securities under section 72(2)(b)(i) read together with section 65(1)(d) of the CMSA.	27 March 2017
13.	Breach of section 356(1)(a) read together with section 61(4) of the Capital Markets and Services Act 2007 (“CMSA”)	Kenanga Investors Berhad (“KIB”)	KIB failed to supervise its business which resulted in two Apex Investment Services Sdn Bhd unit trust consultants (“UTC”) soliciting purchases of KIB’s unit trust products under the identities of two KIB UTCs and attributing such purchases to the KIB UTCs. As such, KIB had contravened the condition of its licence as provided under SC’s Licensing Handbook as follows:- (a) paragraph 7.02(6) for failure to carry on its business efficiently, honestly and fairly; and (b) paragraph 7.02(7) for failure to supervise and monitor its business to ensure compliance with:(i) paragraph 2.1.2(a) of the Federation of Investment Management of Malaysia Code of Ethics and Rules of Professional Conduct (“Code”) which requires it to act with honesty, dignity and integrity; and(ii) paragraph 2.1.2(b) of the Code which requires it to deal in a fair and equitable manner.	Penalty of RM70,000.	26 January 2017
14.	Breach of sections 65(1)(g)(iv) and (l) of the Capital Markets and Services Act 2007 (“CMSA”) for: having engaged in business practices appearing to the SC to be improper or reflect discredit on their method of conducting business; and the SC has reason to believe that the holders of CMSRL will not carry on the regulated activities for which they are licensed for efficiently, honestly or fairly.	Ling Chen Yew (“LCY”) as holder of a CMSRL carrying out the regulated activity of dealing in securities	LCY, TSN and YHM were found to have breached Rules 3.14(d), (e) and (g), and Rule 5.01(b) of the Rules of Bursa Securities, and Paragraph 1.1(1)(h) of Directives No. 5-001 of the Participating Organisations’ Directives and Guidance for engaging in manipulative activities in relation to the trading of Rapid Synergy Bhd and YNH Property Berhad shares.As a result, the SC finds that LCY, TSN and YHM are no longer fit and proper to hold a CMSRL.	Revocation of LCY’s CMSRL for dealing in securities under section 72(2)(b)(i) of the CMSA.	18 January 2017
		Tiong Siew Ngaik (“TSN”) as holder of a CMSRL carrying out the regulated activity of dealing in securities		Revocation of TSN’s CMSRL for dealing in securities under section 72(2)(b)(i) of the CMSA.	18 January 2017
		Yew Hock Ming (“YHM”) as holder of a CMSRL carrying out the regulated activities of dealing in securities and dealing in derivatives		Revocation of YHM’s CMSRL for dealing in securities and dealing in derivatives under section 72(2)(b)(i) of the CMSA.	18 January 2017
15.	Breach of Section 65(1)(l) of the Capital Markets and Services Act 2007 (“CMSA”) where SC has reason to believe that a holder of a Capital Markets Services Representative’s Licence (“CMSRL”) will not carry on the regulated activity efficiently, honestly or fairly	Cheng Seng Chow (“Cheng”), holder of a CMSRL carrying out the regulated activity of dealing in securities	Cheng was charged at the Kuala Lumpur Sessions Court (Case Number: 62-(60-64)-12/2015) on 8 December 2015 with 15 counts of abetting in the commission of the offence of insider trading under Section 370(c) read together with Section 188(2)(a) of the CMSA. The criminal charges raise serious concern on Cheng’s fit and properness to continue to be licensed as a holder of a CMSRL.	Revocation of Cheng’s CMSRL for the regulated activity of dealing in securities under Section 72(2)(b)(i) of the CMSA.	12 January 2017
15.				On 24 January 2017, Cheng submitted an appeal for SC to review its decision to revoke his CMSRL. Having considered the grounds of appeal, the SC had on 7 March 2017 rejected Cheng’s appeal and upheld the revocation.	12 January 2017

No record found.