Administrative Actions in 2017
No. Nature of Misconduct Parties Involved Brief description of misconduct Action Taken

Date of Action

1. 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

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
2. 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

31 July 2017

3. 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

4. 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:

  1. 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
  2. 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 you would emerge as a major shareholder of a listed company in Malaysia

21 July 2017

5. 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:

  1. 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
  2. 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 you would emerge as a major shareholder of a listed company in Malaysia

21 July 2017

6. 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

7. 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

8. 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

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

9. 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

10. 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
Yew Hock Ming (“YHM”) as holder of a CMSRL carrying out the regulated activities of dealing in securities and dealing in derivatives
Revocation of TSN’s CMSRL for dealing in securities under section 72(2)(b)(i) of the CMSA.

18 January 2017

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

11. 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

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.

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.