Administrative Actions in 2014

No.

Nature of Misconduct

Parties Involved

Brief description of misconduct

Action Taken

Date of Action

1. Breach of Section 356 of the Capital Markets and Services Act 2007 for failure to comply with the SC’s Guidelines on Compliance Function For Fund Management Companies. Capital Dynamics Asset Management Sdn Bhd (a Capital Markets Services Licence holder carrying out regulated activities of fund management ) Failure to disclose the deferred performance fees chargeable annually in the statements issued to its clients Directive to disclose to its clients the chargeable performance fees to date, in the statement issued to its clients by 31 December 2014

29 September 2014

2. Breach of Section 356 of the Capital Markets and Services Act 2007 for failure to comply with the SC’s Licensing Handbook and Guidelines on Compliance Function For Fund Management Companies Apex Investment Services Berhad (a Capital Markets Services Licence holder carrying out dealing in securities and fund management)
  • Allowing unlicensed persons to deal in securities by facilitating referral arrangement for its unit trust consultants; and
  • Receiving rebates out of clients’ transactions and not directing it back to clients’ accounts.
Penalty of RM100,000

15 May 2014

3. Breach of Section 356 of the Capital Markets and Services Act 2007 for failure to comply with the SC’s Licensing Handbook AmInvestment Bank Berhad (a Capital Markets Services Licence holder carrying out dealing in securities and fund management) Allowing unlicensed persons to carry out activities of a licensed person in soliciting fund management clients, including receiving trading orders directly from fund management clients. Penalty of RM100,000

29 January 2014

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.