Administrative Actions in 2012

No.

Nature of Misconduct

Parties Involved

Brief description of misconduct

Action Taken

Date of Action

1. Breach of Paragraph 1.03 of the Prospectus Guidelines – Abridged Prospectus for failure to ensure that all the information disclosed in the abridged prospectus was disclosed in a full and true manner. Board of Directors of Mulpha International Berhad Failure to ensure the final basis of allocation of excess rights shares was consistent with the basis disclosed in the abridged prospectus of Mulpha International Berhad dated 24 February 2010 Reprimand

  • Having considered the appeal by the Board of Directors of Mulpha for a review of SC’s decision to impose a reprimand, the SC on 12 July 2012 rejected the appeal.

3 January 2012

2. Breach of Section 65(1)(g) of the Capital Markets & Services Act 2007 Dr. Tan Chong Koay (a Chief Executive Officer and Licensed Director carrying on fund management at Pheim Asset Management Sdn Bhd) Found by the High Court and Court of Appeal of Singapore to have breached section 197(1)(b) of the Securities and Futures Act of Singapore in relation to the trading of United Enviro Tech Ltd shares Penalty of RM50,000

13 January 2012

3. Breaches:

  • Paragraphs 3.08, 3.15(a) and 3.15(c) of the SC’s Guidelines on Due Diligence Conduct for Corporate Proposals;
  • Paragraphs 9.10 and 9.12 of the SC’s Equity Guidelines; and
  • Section 214(1) of the Capital Markets & Services Act 2007 (“CMSA”) read together with section 354(1) of the CMSA.
Affin Investment Bank Berhad
  • Failure to conduct proper due diligence as a principal adviser in relation to a conflict of interest situation, resulting in a material omission in a corporate proposal
Reprimand

21 March 2012

4.* Breaches:

  • Paragraphs 3.05 of the SC’s Guidelines on Due Diligence Conduct for Corporate Proposals;
  • Paragraphs 9.10 and 9.12 of the SC’s Equity Guidelines; and
  • Section 214(1) of the Capital Markets & Services Act 2007 (“CMSA”) read together with section 354(1) of the CMSA.
Ng Kit Heng & Ow Chee Cheoon
  • Failure to disclose a conflict of interest situation to the due diligence working group, resulting in a material omission in a corporate proposal
Reprimand

21 March 2012

5. Breach of:

(a) Sections 65(1)(g)(iv) and 65(1)(l) of the Capital Markets and Services Act 2007 (“CMSA”) for engaging in improper business practices, and not carrying out regulated activity in an honest and fair manner;
(b) Paragraphs 4.05(2) and 7.03(1) of the Licensing Handbook for failing to fulfil minimum criteria of a fit and proper person; and
(c) Section 356(1)(a) of the CMSA for failing to comply with the provisions of the CMSA and Licensing Handbook
Tye Lim Huat (a Capital Markets Services Representative’s Licence holder carrying out dealing in securities at Malacca Securities Sdn Bhd) Tye Lim Huat facilitated the use of names and accounts of several Bumiputera individuals by a client of Malacca Securities Sdn Bhd for application of IPO shares, and facilitated arrangement to transfer the sale proceeds to the client’s account
(a) Penalty of RM60,000; and
(b) Suspension of
one (1)
month

2 July 2012

* The above sanctions against the person in breach (PIB) is subject to the PIB’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 and Services Act 2007, within 30 days of the decision at first instance.

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.