Administrative Actions in 2008
No. Nature of Misconduct Parties Involved Brief description of misconduct Action Taken
DIRECTIVES
1. Failure to undertake a mandatory offer Datuk Teh Kian An (DTK)

Pursuant to acquiring control in Kumpulan Jetson Berhad (KJB), Datuk Teh Kian An (DTK) failed to undertake a mandatory offer for the remaining shares in KJB.

Directed to disgorge the profits made to a charity of his choice
2. Failure to comply Guidelines on Unit Trust Funds Amanah Saham Sarawak Berhad (ASSB)

The CEO of ASSB was found to have been involved in unethical activities/misconduct, which disqualifies him. ASSB failed to inform SC of the CEO’s disqualification and to ensure that the CEO vacates his position immediately.

Directed to remove Chief Executive Officer (CEO) from office
3.

Failure to observe its obligation and duties as a Participating Organisation to maintain a fair and orderly market and for serious lapses in its supervisory and internal controls.

PM Securities Sdn Bhd Failed to comply with various Bursa’s Rules and SC’s Guidelines, and for performing /omitting to perform acts that are likely to prejudice public interest Directed not to register new dealer’s representative for 6 months

SUSPENSION OF LICENCE

1.
  • Breached the minimum criteria as set out in the Schedule of the SIA with regard to probity, competence and soundness of judgment in fulfilling your responsibilities as a Dealer’s Representative
  • Failed to perform duties efficiently, honestly or fairly

Patrick Taylor

Failed to carry out supervisory duties over dealer representative Lee Hooi Li which resulted in authorised use of 5 clients accounts for the trading of Iris shares continuously for 27 days Suspension of dealer’s representative licence for 6 months effective 23 April 2008
2.
  • Breached the Fit and Proper Criteria set out in the Schedule to the SIA
  • Breached the Fit & Proper Criteria set out in section 65(1)(g) (iv) & (v) of the CMSA

Chia Chin Ee

  • Executed sales transactions for odd lots that far exceeded the prevalent market price then.
  • Failure to inform management of CIMB Securities of the said suspicious transactions.

Suspension of licence for 4 weeks effective 24 July 2008

3.
  • Breached condition of dealer’s representative licence
  • Breached the Fit and Proper Criteria set out in the Schedule to the SIA

Gan Puay Pin

  • Allowed unlicenced trading clerk to directly receive and execute client’s orders.
  • The orders to buy odd lots far exceeded the prevalent market price then and failed to inform the management of KN Kenanga of the said suspicious transactions.

Suspension of licence for 4 weeks effective 14 August 2008

4.
  • Breached condition of dealer’s representative licence
  • Breached the Fit and Proper Criteria set out in the Schedule to the SIA
  • Breached Proper and Fit Criteria set out in s65(1)(g)(iv)&(v) CMSA

Yap Eng Guan

  • Allowed unlicenced trading clerk to directly receive and execute client’s orders.
  • The orders to buy odd lots far exceeded the prevalent market price then.
  • Executed further odd lots transactions despite the failure to settle by the client.
  • Failed to inform the management of KN Kenanga of the said suspicious transactions.

Suspension of licence for 8 weeks effective 14 August 2008

REVOCATION OF LICENCE
1.
  • Breached the minimum criteria as set out in the Schedule of the SIA with regard to probity, competence and soundness of judgment in fulfilling responsibilities as a Dealer’s Representative.
  • Failed to perform duties efficiently, honestly or fairly.
Lee Hooi Li Without prior authority, used 5 clients accounts for the trading of Iris shares, displaying total disregard to the regulatory controls put in place for clearing accounts, continuously for 27 trading days Her dealer’s representative licence was revoked.
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.
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