Regulatory Settlements in 2018
|Regulatory Settlement with Tan Eng Kean|
|On 6 April 2018, Tan Eng Kean (“Tan EK”) entered into a settlement with the SC in the sum of RM56,900.00 when he agreed without admission or denial of liability to settle a claim that the SC was proposing to institute against him for acquiring 5,000 PacificMas Berhad (“PacMas”) shares in his account while in possession of inside information contrary to section 188(2) of the Capital Market and Services Act 2007 (“CMSA”). The inside information was in relation to a proposed conditional take-over offer by OSPL Holdings Sdn Bhd (“OSPL”) to acquire all the voting shares in PacMas not already owned by OSPL which was announced on 4 January 2008. Additionally, a civil penalty of RM50,000 was imposed by the SC. The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws.
The amount disgorged from Tan EK is equivalent to 3 times the difference between the price at which the shares were acquired and the price at which the shares would have been likely to have been acquired at the time of the acquisition, if the information had been generally available. The monies recovered will be applied in accordance with section 201(7) of the CMSA.