Kuala Lumpur, 28 July 2010
SC revokes SJ Asset Management license, appoints provisional liquidators

The Securities Commission Malaysia (SC) has revoked SJ Asset Management Sdn Bhd’s (SJAM) license to undertake fund management activities. The move, which took immediate effect, came after the SC found that SJAM breached regulatory requirements in relation to the safeguarding of clients’ assets and the company had engaged in deceitful and improper business practices.

The SC also found that SJAM had furnished false and misleading information and documents to the regulator.

The SC is working closely with the police and regulatory counterparts in other countries as part of its investigations into the affairs of SJAM.

Arising from the above, the SC has on 27 July 2010  petitioned to the High Court pursuant to Section 361 of the Capital Markets and Services Act 2007 (CMSA) for the winding up of SJAM.  The winding-up of SJAM will enable liquidators to effectively deal with the rights and entitlements of all creditors including the clients of SJAM.  The liquidators would also determine an appropriate basis of returning the clients assets to the entitled clients.

Pending the granting of the winding-up order by the High Court and in order to protect the interests of all clients and stakeholders of SJAM, the SC has petitioned for provisional liquidators to be appointed.  Following this, the High Court has on 28 July 2010  appointed Dato Gan Ah Tee and Mr Mok Chew Yin of BDO Governance Advisory Sdn Bhd as the Provisional Liquidators.

The SC urges all affected parties to cooperate with the Provisional Liquidators to ensure an effective resolution of the issues confronting SJAM. All clients of SJAM are advised to contact the Provisional Liquidators vide Ms Bonnie Tham at  (603) 2616 2841 or bonnietham@bdo.my for further details on the status of their investments.

The SC  has issued  various guidelines and circulars on conduct expected of asset management firms and all firms are reminded to ensure strict compliance.