Administrative Actions in 2018
No. Nature of Misconduct Parties Involved Brief description of misconduct Action Taken Date of Action
1.

Breach of Section 356(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with:

  • Paragraphs 8.2.1, 11.2, 11.3 and 11.4 of the SC’s Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries; and

 

  • Section 61(4) of the CMSA for contravention of conditions of its Capital Markets Service Licence, set out in Paragraphs 7.02(11) and 7.02(12)(a) of the SC’s Licensing Handbook; and
  • Core Principle 3 of the SC’s Guidelines on Market Conduct and Business Practices for Stockbroking Companies and Licensed Representatives (“Market Conduct Guidelines”)

 

RHB Investment Bank Berhad (“RHBIB”)

  • RHBIB had failed to conduct on-going due diligence and scrutiny of the trading account of seven of RHBIB’s clients;
  • RHBIB had failed to discover and report suspicious transactions in five accounts to the Financial Intelligence and Enforcement Department of Bank Negara Malaysia;
  • RHBIB had failed to identify its customer and verify such customer’s identity using reliable, independent source of documents, data or information; and
  • RHBIB had failed to adequately supervise its licenced representatives and ensure their compliance with securities laws.
  • RHBIB had breached Core Principle 3 of the Market Conduct Guidelines, as it had failed to organise its affairs responsibly and effectively due to absence of adequate controls and risk management processes.
  • Reprimand
  • Penalty of RM900,000

 

18 December 2018

2.

Breach of Paragraph 4.0(b) of the Market Conduct Guidelines

Chan Cheong Yuen, the Managing Director and Chief Executive Officer of RHBIB at the material time

Failure as Managing Director and Chief Executive Officer  to ensure that adequate policies and procedures are in place to organise and control RHBIB's affairs responsibly and effectively, with adequate risk management and supervision to meet the requirements of Core Principle 3.

  • Reprimand
  • Penalty of RM200,000

18 December 2018

3. Breach of Section 65(1)(g)(v) of the CMSA for conducting himself in such a way as to cast doubt on his competence and soundness of judgement Khe Yew Chun @ Jie Yaw Chuan (“Khe”), a holder of a CMSRL carrying out the regulated activity of dealing in securities Khe, being the Head of RHB Centre Main Branch, Retail, Securities and Futures had proactively sought for a letter by relying on three individuals, despite them being stated to be involved in the misappropriation of monies deposited with a client of RHBIB. Khe had also instructed a Branch Administration Manager to verify the said letter, without the Branch Manager being aware of another letter. The result was that a false and misleading letter was submitted to the SC.
  • Suspension of 1 month
18 December 2018
4. Breach of Section 356(1)(a) of the CMSA read together with  Section 61(4) of the CMSA for failure to comply with the condition of his Capital Market Services Representative License (“CMSRL”), which requires him to remain fit and proper at all times as provided under Paragraph 7.03(1) of the SC’s Licensing Handbook
  • Reprimand
5. Breach of Section 65(1)(g)(iv) of the CMSA for engaging in business practices appearing to the SC to be improper or reflects discredit on his method of conducting business. Azhar Bin Ahmad (“Azhar”), a holder of a CMSRL carrying out the regulated activity of dealing in securities Azhar had signed-off as a witness to an individual's signature in an application form despite no face-to-face meeting between him and the said individual prior to his account opening. Azhar had also certified as true, copies of the individual's identity card and bank statements despite not having sighted the original documents. This resulted in monies being allocated from the individual to a third party's account. Upon being informed that the sum of monies belonged to the individual, Azhar failed to notify RHBIB immediately and only did so six (6) months later.
  • Reprimand
18 December 2018
6. Breach of Section 356(1)(a) of the CMSA read together with Section 61(4) of the CMSA for failure to comply with the condition of his CMSRL, which requires him to remain fit and proper at all times as provided under Paragraph 7.03(1) of the SC's Licensing Handbook
7.

Breach of Section 354(1)(a) of the Capital Market and Services Act 2007 (CMSA)  read together with Section 229(3), 230(3) and 246(1)(a) of the CMSA for causing the Issuance of Ace Holdings Berhad (“AHB”) Information Memorandum dated 8 September 2015 (AHB’s 1st Info Memo) and Information Memorandum dated 5 January 2018  (AHB’s 2nd Info Memo), which contained  false or misleading information.

ACE Holdings Berhad  (“AHB”)

Caused the issuance of AHB’s 1st Info Memo  and  AHB’s 2nd Info Memo which contained  false or misleading information in relation to the following:

In respect of AHB’s 1st Info Memo:-

  • Issued and paid-up capital of Ace Credit Sdn Bhd
  • The targeted amount of fund to be raised
  • The Utilisation of the  proceed raised

In respect of AHB’s 2nd Info Memo:-

  • AHB  past record  of  the amount of fund raised in the 1st Info Memo; and
  • Utilisation of the fund raised under AHB’s2nd Info Memo.
  1. Reprimand
  2. Direction to AHB to issue a corrective disclosure to all the subscribers of the redeemable preference shares pursuant to AHB’s 1st Info Memo and the Islamic redeemable preference shares pursuant to AHB’s 2nd Info Memo to address issues raised in the Notice to Show Cause dated 24 August 2018 and to ensure subscribers are provided with updated and accurate information on their investment.
  3. Direction  to  AHB to appoint an external Auditor who is registered with the Audit Oversight Board and acceptable to the SC to do the following:-
    • To conduct a monitoring function in respect of the capital raised by AHB pursuant to AHB’s 1st Info Memo and AHB’s 2nd Info Memo and the utilisation of the said capital for a time period to be determined by the SC; and
    • To conduct a special audit to carry out position assessment of financial position in relation to the capital raised by AHB pursuant to AHB’s 1st Info Memo and AHB’s 2nd Info Memo and the utilisation of the said capital.
  4. Direction to AHB to cease and refrain from conducting any marketing or fund raising activities pursuant to AHB’s 1st Info Memo and AHB’s 2nd Info Memo; and
  5. Direction to AHB to seek the SC’s prior written approval in the event it intends to conduct any future fund raising activities
11 December 2018
8.

Breach of Obligation to Undertake Mandatory Offer (“MO”) for the Remaining Voting Shares in Can-One Berhad (“Can-One”) pursuant to Section 218(3) of the Capital Markets and Services Act 2007 (“CMSA”) read together with Paragraph 9(1)(b) of the Malaysian Code on Take-overs and Mergers 2010 (“Take-Over Code”)

Yeoh Jin Hoe (“YJH”)

And

  1. Eller Axis Sdn Bhd
  2. Patricia Woon Lai Ching @ Lee Yah Seng
  3. Marc Francis Yeoh Min Chang
  4. Scott Sebastian Yeoh Min Hsing
  5. Yeoh Jin Aik
  6. Yeoh Jin Kim
  7. Yeoh Jin Beng
  8. Agnes Goh Cheng Suan
  9. Iska Tenaga Sdn Bhd
  10. Sanwoi (Malaysia) Sdn Bhd

(collectively parties acting in concert and referred to as “the Can-One PACs”).

YJH and the Can-One PACs breached Section 218(3) of the CMSA and Paragraph 9(1)(b) of the Take-Over Code in relation to their acquisition of shares in Can-One. 

Having increased the collective holdings by more than 2% over a 6-month period, YJH and the Can-One PACs failed to undertake a MO to acquire the remaining shares in Can-One.
  1. Reprimand; and
  2. Penalty of RM480,000.
10 December 2018
9.

Breach of Obligation to Undertake MO for the Remaining Voting Shares in Kian Joo Can Factory Berhad (“KJCF”) pursuant to Section 218(2) of the CMSA read together with Paragraph 9(1)(a) of the Take-Over Code

YJH

And

  1. Can-One International Sdn Bhd
  2. Bukit Feringhi Resort Sdn Bhd
  3. Patricia Woon Lai Ching @ Lee Yah Seng
  4. Marc Francis Yeoh Min Chang
  5. Scott Sebastian Yeoh Min Hsing
  6. Yeoh Jin Aik
  7. Agnes Goh Cheng Suan
  8. Sanwoi (Malaysia) Sdn Bhd

             
(collectively parties acting in concert and referred to as “the KJCF PACs”).

  1. YJH and the KJCF PACs breached Section 218(2) of the CMSA and Paragraph 9(1)(a) of the Take-Over Code in relation to their acquisition of shares in KJCF. 
  2.  
Having increased the collective holdings over 33%, YJH and the KJCF PACs failed to undertake a MO to acquire the remaining shares in KJCF.
  1. Reprimand;
  2. Penalty of RM455,000; and
  3. Restriction on the aggregate number of voting rights that may be exercised by YJH and the KJCF PACs in KJCF to not more than 33%.
In addition, if the proposed corporate exercise in Kian Joo is not carried out within six (6) months from the date of the letter, YJH and the KJCF PACs are required to reduce their collective holdings in KJCF to 33% and below.
10 December 2018
10.

Breach of Section 354(1)(a) of the Capital Market and Services Act 2007  read together with:

Section 134(5)(c)  of the Securities Commission Act 1993 (“SCMA”) for knowingly providing false information  to the Investigation Officer (“IO”) of the SC  in a statements recoded under Section 134 of the SCMA.

Lim Boon Cheng

Knowingly providing false information to the IO of the SC in statements recorded under Section 134 of the SCMA.

Penalty of RM100,000

26 September 2018
11. Breach of Section 356(1)(a) of the Capital Market and Services Act 2007 (“CMSA”) read together with Paragraph 4.17, Section B, Part 1 of the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework (“LOLA Guidelines”) MTC Asset Management (M) Sdn Bhd (“MTC”), a holder of a Capital Market Services Licence for fund management Delay of 1 business day in submitting the monthly statistical returns of a wholesale fund. The SC imposed a penalty of RM1,000 against MTC. 21 December 2018
12. VCB Capital Sdn Bhd (“VCB Capital”), a holder of a Capital Market Services Licence for fund management

Delay of 2 business days in submitting the monthly statistical returns of a wholesale fund.

The SC imposed a penalty of RM2,000 against VCB Capital.

26 November 2018

13.

Kumpulan Sentiasa Cemerlang Sdn Bhd (“KSC”), a holder of a Capital Market Services Licence for fund management

Delay of 1 business day in submitting the monthly statistical returns of 7 wholesale funds.

The SC imposed a penalty of RM7,000 against KSC.

26 November 2018

14.

Breach of Section 356(1)(a) of the CMSA read together with Paragraphs 4.17 and 4.18(e), Section B, Part 1 of the LOLA Guidelines

AmanahRaya Investment Management Sdn Bhd (“AmanahRaya”), a holder of a Capital Market Services Licence for dealing in securities restricted to unit trust and fund management

Delay of 1 business day in submitting the monthly statistical returns of a wholesale fund.

The SC imposed a penalty of RM1,000 against AmanahRaya.

26 November 2018

15.

Breach of Section 356(1)(a) of the CMSA read together with Paragraphs 4.07, Section B, Part 3 of the LOLA Guidelines

Kenanga Invesment Bank Berhad (“KIBB”), a holder of a Capital Markets Services Licence for dealing in securities and private retirement scheme, advising on corporate finance and investment advice

Delay of 4 business days in submitting the post-issuance notice on behalf on an issuer.

The SC imposed a penalty of RM4,000 against KIBB.

26 November 2018

16.

Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 ("CMSA") read together with section 215(3)(a)(b)(i) of the CMSA ("Breach 1")

Breach of section 354(1)(b)(ii) of the CMSA read together with Paragraph 3.05(c) of the Guidelines On Due Diligence Conduct For Corporate Proposals ("DDGL") ("Breach 2")
Lotte Chemical Titan Holding Berhad ("LCT" or the "Company")

Failure to inform the SC of material developments to LCT ("Material Developments") prior to its listing on the Main Market of Bursa Malaysia.  The Material Developments related to LCT's financial performance subsequent to 1st quarter 2017, which was relevant to LCT's corporate proposal. These Material Developments arose after LCT's Prospectus was submitted to the SC but prior to its listing.

Failure to inform its Principal Adviser of the Material Developments which may have an impact on the corporate proposal for its listing. 

  1. Reprimand and Penalty of RM280,000 for Breach 1;
  2. Reprimand and Penalty of RM280,000 for Breach 2.

On 7 August 2018, LCT filed a review application to the SC against the sanctions imposed. On 13 December 2018, the SC decided to affirm the sanctions.

9 July 2018
17.

Breach of section 354(1)(a) of the CMSA read together with section 215(3)(a)(b)(i) and Section 367(1) of the CMSA

Tan Sri Dato' Abdul Rahman Bin Mamat

Failure to inform the SC of material developments to LCT ("Material Developments") prior to its listing on the Main Market of Bursa Malaysia.  The Material Developments related to LCT's financial performance subsequent to 1st quarter 2017, which was relevant to LCT's corporate proposal. These Material Developments arose after LCT's Prospectus was submitted to the SC but prior to its listing.

On 13 December 2018, the SC had set aside the reprimand imposed on Tan Sri Dato' Abdul Rahman Bin Mamat pursuant to his review application filed on 7 August 2018.

9 July 2018
18.

Breach of section 354(1)(a) of the CMSA read together with section 215(3)(a)(b)(i) and section 367(1) of the CMSA ("Breach 1")

Breach of section 354(1)(b)(ii) of the CMSA read together with Paragraph 3.05(c) of the DDGL ("Breach 2")

Lee Dong Woo

Failure to inform the SC of material developments to LCT ("Material Developments") prior to its listing on the Main Market of Bursa Malaysia.  The Material Developments related to LCT's financial performance subsequent to 1st quarter 2017, which was relevant to LCT's corporate proposal. These Material Developments arose after LCT's Prospectus was submitted to the SC but prior to its listing.

Failure to inform its Principal Adviser of the Material Developments which may have an impact on the corporate proposal for its listing.
  1. Reprimand and Penalty of RM220,500 for Breach 1;
  2. Reprimand and Penalty of RM220,500 for Breach 2.

On 7 August 2018, Lee Dong Woo filed a review application to the SC against the sanctions imposed. On 13 December 2018, the SC decided to affirm the sanctions.

9 July 2018
19.

Breach of section 354(1)(a) of the CMSA read together with section 215(3)(a)(b)(i) and section 367(1) of the CMSA ("Breach 1")

Breach of section 354(1)(b)(ii) of the CMSA read together with Paragraph 3.05(c) of the DDGL ("Breach 2")

Lee Kwan Ho

Failure to inform the SC of material developments to LCT ("Material Developments") prior to its listing on the Main Market of Bursa Malaysia.  The Material Developments related to LCT's financial performance subsequent to 1st quarter 2017, which was relevant to LCT's corporate proposal. These Material Developments arose after LCT's Prospectus was submitted to the SC but prior to its listing.

Failure to inform its Principal Adviser of the Material Developments which may have an impact on the corporate proposal for its listing.

  1. Reprimand and Penalty of RM220,500 for Breach 1;
  2. Reprimand and Penalty of RM220,500 for Breach 2.

On 7 August 2018, Lee Kwan Ho filed a review application to the SC against the sanctions imposed. On 13 December 2018, the SC decided to affirm the sanctions.

9 July 2018
20.

Breach of section 354(1)(a) of the CMSA read together with section 215(3)(a)(b)(i) and Section 367(1) of the CMSA

 

Cho Seongtaeg

Failure to inform the SC of material developments to LCT ("Material Developments") prior to its listing on the Main Market of Bursa Malaysia.  The Material Developments related to LCT's financial performance subsequent to 1st quarter 2017, which was relevant to LCT's corporate proposal. These Material Developments arose after LCT's Prospectus was submitted to the SC but prior to its listing.

Reprimand

Cho Seongtaeg has applied for the SC to review its decision against him.

9 July 2018
21.

Breach of section 354(1)(a) of the CMSA read together with section 215(3)(a)(b)(i) and Section 367(1) of the CMSA

 

Tan Sri Datuk (Dr) Rafiah Binti Salim Failure to inform the SC of material developments to LCT ("Material Developments") prior to its listing on the Main Market of Bursa Malaysia.  The Material Developments related to LCT's financial performance subsequent to 1st quarter 2017, which was relevant to LCT's corporate proposal. These Material Developments arose after LCT's Prospectus was submitted to the SC but prior to its listing.

On 13 December 2018, the SC had set aside the reprimand imposed on Tan Sri Datuk (Dr) Rafiah Binti Salim pursuant to her review application filed on 7 August 2018.

9 July 2018
22.

Breach of section 354(1)(a) of the CMSA read together with section 215(3)(a)(b)(i) and Section 367(1) of the CMSA

 

Ang Ah Lek

Failure to inform the SC of material developments to LCT ("Material Developments") prior to its listing on the Main Market of Bursa Malaysia.  The Material Developments related to LCT's financial performance subsequent to 1st quarter 2017, which was relevant to LCT's corporate proposal. These Material Developments arose after LCT's Prospectus was submitted to the SC but prior to its listing.

 

On 13 December 2018, the SC had set aside the reprimand imposed on Ang Ah Lek pursuant to his review application filed on 7 August 2018.

9 July 2018
23.

Breach of section 354(1)(a) of the CMSA read together with section 215(3)(a)(b)(i) of the CMSA

 

Ernst & Young ("EY") Failure to inform the SC of material developments to LCT ("Material Developments") prior to its listing on the Main Market of Bursa Malaysia.  The Material Developments related to LCT's financial performance subsequent to 1st quarter 2017, which was relevant to LCT's corporate proposal. These Material Developments arose after LCT's Prospectus was submitted to the SC but prior to its listing.
  1. Reprimand;
  2. Penalty of RM297,500; and
  3. Directs EY to do the following:-
    • conduct a comprehensive review and assessment for adequacy of all policies and processes relating to EY's role as an Adviser and Expert (Reporting Accountant) (as  prescribed in Paragraphs 3.20 to 3.23 of the DDGL). The results of such review and assessment together with recommendations (if any) must be reported to the SC within three (3) months from 9 July 2018; and
    • table the SC's decision at a meeting of EY's Risk Committee or equivalent  and a copy of the minutes of the meeting together with the relevant committee papers discussing the issues must be forwarded to the SC within one (1) month from 9 July 2018.

On 8 August 2018, EY filed a review application to the SC against the sanctions imposed. On 13 December 2018, the SC decided to affirm the sanctions.

9 July 2018
24.

Breach of section 354(1)(b)(ii) of the Capital Markets and Services Act 2007 ("CMSA") read together with Paragraphs 3.03 and 3.08 of the DDGL

 

Maybank Investment Bank Berhad ("Maybank IB")

Failure to carry out appropriate due diligence in order to assess the state of LCT's financial performance subsequent to 1st quarter 2017 that may impact the accuracy of the statements in LCT's Prospectus.

  1. Reprimand;
  2. Penalty of RM450,000; and
  3. Directs Maybank IB to do the following:-
    • conduct a comprehensive review and assessment for adequacy of conduct a comprehensive review and assessment for adequacy of all policies and processes relating to Maybank IB's role as Principal Adviser or sponsor for corporate proposals (as defined in Paragraphs 3.08 to 3.19 of the DDGL). Results of such review and assessment together with recommendations (if any) must be reported to the SC within three (3) months from 9 July 2018; and
    • table the SC's decision at a meeting of the Board of Directors of Maybank IB and a copy of the minutes of meeting together with the relevant Board papers discussing the issues must be forwarded to the SC within one (1) month from 9 July 2018.

On 23 July 2018, Maybank IB filed a review application to the SC against the sanctions imposed. On 13 December 2018, the SC decided to affirm the sanctions.

9 July 2018
25.

Breach of Sections 65(1)(g)(v) and (l) of the Capital Markets and Services Act 2007 (“CMSA”):

  • For conducting himself in such a way as to cast doubt on his competence and soundness of judgement; and
  • the SC has reason to believe that the holder  of the Capital Markets Services Representative’s Licence (“CMSRL”) will not carry on the regulated activity for which he is licensed for efficiently, honestly or fairly
Shaiful Nazren bin Kassim (“Shaiful”), a holder of a CMSRL carrying out the regulated activity of dealing in securities
  1. Conducted discretionary trading on the accounts of three (3) of his clients without obtaining prior approval from the senior management of his stockbroking company;
  2. Traded excessively on several of his clients' accounts which generated substantial brokerage income for himself while causing the said clients losses over a four-year period;
  3. Failed to fulfil a client's requests, including instructions  for withdrawal of monies from her accounts as well as queries into account status and balance; and
  4. Failed to exercise due care and diligence by affiliating himself with AAM Academy and Akademi Saham Malaysia, which had disseminated marketing materials containing misleading representations to the effect that investing in shares is capital protected with guaranteed returns.

Revocation of Shaiful's CMSRL for dealing in securities under Section 72(2)(b)(i) of the CMSA

18 June 2018

On 2 July 2018, Shaiful appealed to the SC against the sanctions imposed.

On 7 December 2018, the SC decided to affirm the sanctions but allowed Shaiful to make the payment of the penalty in twenty-four (24) monthly instalments. Revocation of Shaiful's CMSRL shall take effect from the same date.
26.

Breach of Section 356(1)(a) of the CMSA read together with:

  • Section 61(4) of the CMSA for failure to comply with the condition of his CMSRL, which requires him to remain fit and proper at all times as provided under Paragraph 7.03(1) of the SC's Licensing Handbook; and
  • Paragraph 7.0(a) of the Guidelines on Market Conduct and Business Practices for Stockbroking Companies and Licensed Representatives for conducting discretionary trading on the accounts of clients without obtaining prior approval from the senior management of his stockbroking company.

Penalty of RM123,750

27. Breach of sections 65(1)(g)(iv),  (v) and (m) of the Capital Markets and Services Act 2007 ("CMSA") for:

  • having engaged in business practices appearing to the SC to be improper or reflect discredit on his method of conducting business;
  • having engaged in business practices or conducted himself in such a way to cast doubt on competence and soundness of judgment; and
  • SC being of the opinion that it would be contrary to the public interest for him to continue holding a CMSRL for the regulated activity of dealing in securities.
Tan Yee Chee as holder of a Capital Markets Services Representative's Licence ("CMSRL") carrying out the regulated activity of dealing in securities.

 

The SC finds that the consent judgment recorded by the Kuala Lumpur High Court pursuant to a civil suit (Suit Number: WA-22NCC-300-07/2017) which declared Tan Yee Chee as having contravened Section 188(2)(a) of the CMSA in relation to insider trading in respect if the acquisition of Kencana Petroleum Berhad shares and raises serious concerns on Tan Yee Chee's fit and properness as a CMSRL holder. Revocation of CMSRL for the regulated activities of dealing in securities under Section 72(2)(b)(i) read together with Section 65(1)(vi), (v) and (m) of the CMSA. 3 September 2018
28. Breach of Section 65(1)(l) of the CMSA in that SC has reason to believe that the CMSRL holder will not carry on the regulated activity of dealing in securities efficiently, honestly or fairly. Ewe Lay Peng  as holder of a CMSRL carrying out the regulated activity of advising on corporate finance. The SC finds that the criminal charge levelled against Ewe Lay Peng on 29 March 2017 at the Kuala Lumpur Sessions Court (Case Number: 62SC-(001-004)-03/2017) for communicating non-public information pursuant to Section 188(3)(b) of the CMSA raises serious concern on Ewe Lay Peng's fit  and properness as a CMSRL holder. Revocation of CMSRL for the regulated activities of dealing in securities under Section 72(2)(b)(i) read together with Section 65(1)(l). 3 September 2018
29. Breach of Section 354(1)(a) read together with Section 59(1) of the Capital Markets and Services Act 2007 ("CMSA") for holding out as a holder of Capital Markets Services Representative's Licence for dealing in securities Raja An Nurum Muhammadun Jamil Iqbal bin Mohamed @ Mohd Beta, sole proprietor of Mthreepttwo Rich Resources Holding out as a holder of Capital Markets Services Representative's Licence for dealing in securities
  • Reprimand
  • Penalty of RM50,000.00
9 July 2018
30. Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 ("CMSA") read together with section 369(b)(B) of the CMSA Multi Sports Holdings Berhad ("Multi Sports") Knowingly causing the furnishing of Multi Sports' financial statements that is false or misleading to Bursa Malaysia. The financial statements concerned were Multi Sports' Condensed Consolidated Statement of Financial Position as at 31 March 2015 ("1Q 2015") until Condensed Consolidated Statement of Financial Position as at 31 March 2016 ("1Q 2016") Reprimand 27 June 2018
31. Breach of section 354(1)(a) of the CMSA read together with section 369(b)(B) of the CMSA ("Breach 1")

Breach of section 354(1)(a) of the CMSA read together with section 137(1) of the Securities Commission Malaysia Act 1993 ("SCMA") for failure to comply with a section 152(1) Notice of the SCMA ("Breach 2")

Lin Huozhi Knowingly authorising the furnishing of Multi Sports' financial statements that is false or misleading to Bursa Malaysia. The financial statements concerned were Multi Sports' 1Q 2015 until 4Q 2015.

Failure to provide any response to the Section 152 Notice which was sent by the SC to Lin Huozhi.

 

  • Reprimand
  • The SC has issued a public statement to the effect that, in the SC's opinion, the retention of office by Lin Huozhi as a Director of Multi Sports is prejudicial to the public interest

 

27 June 2018
32. Breach of section 354(1)(a) of the CMSA read together with section 369(b)(B) of the CMSA ("Breach 1")

Breach of section 354(1)(a) of the CMSA read together with section 137(1) of the Securities Commission Malaysia Act 1993 ("SCMA") for failure to comply with a section 152(1) Notice of the SCMA ("Breach 2")

Lin Liying Knowingly authorising the furnishing of Multi Sports' financial statements that is false or misleading to Bursa Malaysia. The financial statements concerned were Multi Sports' 1Q 2015 until 4Q 2015.

Failure to provide any response to the Section 152 Notice which was sent by the SC to Lin Liying.

 

  • Reprimand
  • The SC has issued a public statement to the effect that, in the SC's opinion, the retention of office by Lin Liying as a Director of Multi Sports is prejudicial to the public interest

 

27 June 2018
33. Breach of section 354(1)(a) of the CMSA read together with section 369(b)(B) of the CMSA

 

Wong Wang Lam Knowingly ­­authorising the furnishing of Multi Sports' financial statements that is false or misleading to Bursa Malaysia. The financial statements concerned were Multi Sports' 1Q 2015 until 4Q 2015.

 

  • Reprimand
27 June 2018
34. Breach of Section 354(1)(b)(ii) of the Capital Market and Services Act 2007 ("CMSA") read together with Paragraph 4.17, Section B, Part 1 of the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework ("LOLA Guidelines"). MTC Asset Management (M) Sdn Bhd ("MTC"), a holder of a Capital Market Services Licence for fund management Delay of 2 business days in submitting the monthly statistical returns of a wholesale fund. SC imposed a penalty of RM2,000 against MTC. 11 June 2018
35. Breach of Section 356(1)(a) of the CMSA read together with Paragraphs 4.17 and 4.18(e), Section B, Part 1 of the LOLA Guidelines. AmFunds Management Berhad ("AmFunds"), a holder of a Capital Market Services Licence for dealing in securities restricted to unit trust, fund management and dealing in Private Retirement Scheme Delay of 1 business day in submitting the monthly statistical returns of 2 wholesale funds. SC imposed a penalty of RM2,000 against AmFunds. 11 June 2018
36. AmIslamic Funds Management Sdn Bhd ("AmIslamic"), a holder of a Capital Market Services Licence for fund management Delay of 1 business day in submitting the monthly statistical returns of a wholesale fund. SC imposed a penalty of RM1,000 against AmIslamic. 11 June 2018
37. RHB Asset Management Sdn Bhd ("RHB Asset Management"), a holder of a Capital Markets Services Licence for dealing in securities restricted to unit trust, fund management, dealing in Private Retirement Scheme and investment advice Delay of 1 business day in submitting the monthly statistical returns of 3 wholesale funds. SC imposed a penalty of RM3,000 against RHB Asset Management. 11 June 2018
38. Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 ("CMSA") read together with Regulation 4(1) of the Securities Industry (Compliance with Approved Accounting Standards) Regulation 1999 ("SIR") NetX Holdings Berhad (NetX) Failure to comply with the relevant Malaysian Financial Reporting Standards ("MFRS") in relation to NetX's Audited Financial Statements for the financial years ended 30 June 2014 ("AFS 2014") and 30 June 2015 ("AFS 2015").

 

Reprimand 5 June 2018
39. Breach of section 354(1)(a) of the CMSA read together with Regulation 4(1) of the SIR YM Tengku Ahmad Badli Shah bin Raja Hussin Failure to comply with the relevant MFRS in relation to NetX's AFS 2015 Reprimand 5 June 2018
40. Breach of section 354(1)(a) of the CMSA read together with Regulation 4(1) of the SIR Tan Sik Eek Failure to comply with the relevant MFRS in relation to NetX's AFS 2015 Reprimand 5 June 2018
41. Breach of section 354(1)(a) of the CMSA read together with Regulation 4(1) of the SIR Chu Chee Peng Failure to comply with the relevant MFRS in relation to NetX's AFS 2015 Reprimand 5 June 2018
42. Breach of section 354(1)(a) of the CMSA read together with Regulation 4(1) of the SIR Yong Ket Inn Failure to comply with the relevant MFRS in relation to NetX's AFS 2015 Reprimand 5 June 2018
43. Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 ("CMSA") read together with Regulation 4(1) of the Securities Industry (Compliance with Approved Accounting Standards) Regulation 1999 ("SIR") Khee San Berhad ("Khee San" or the "Company") Failure to comply with the relevant Malaysian Financial Reporting Standards ("MFRS") in relation to Khee San's Audited Financial Statements for the financial years ended 30 June 2015 ("AFS 2015") and 30 June 2016 ("AFS 2016").
  1. Reprimand;
  2. Directs Khee San to rectify and re-issue Khee San's AFS 2015 and AFS 2016 as follows:
    (a) Khee San shall appoint an external Auditor (who is registered with the Audit Oversight Board ("AOB)) acceptable to the SC to re-audit the entire AFS 2015 and AFS 2016 ("Re-audit of AFS 2015 & AFS 2016");

    (b) Based on the findings of the re-audit of AFS 2015 and AFS 2016, Khee San is to rectify and re-issue the AFS 2015, AFS 2016 and all quarterly results and audited financial statements issued subsequent to AFS 2016 ("Restatement of Accounts");

    (c) The Re-audit of AFS 2015 & AFS 2016 and Restatement of Accounts is to be completed by KHEESAN within six (6) months from 21 May 2018.
  3. Directs Khee San to seek appropriate independent professional advice to reconstitute an effective Audit Committee ("AC") as follows:

    (a) Khee San shall consult and appoint an independent consultant for an assessment of the effectiveness of Khee San's current AC, particularly on the level of knowledge, skills, expertise and commitment of the AC members in discharging its responsibilities effectively and make appropriate recommendations ("Assessment of the AC");

    (b) Khee San's Board of Directors shall assess the findings on the Assessment of AC and take appropriate steps;

    (c) Khee San shall highlight in its next audited financial statements and announce to Bursa Malaysia Securities Berhad ("Bursa") the appropriate action the Company has taken in addressing the SC's directive; and

    (d) The Assessment of the AC must be completed by KHEESAN within three (3) months from the completion of the Restatement of Accounts.

  4. Directs Khee San to address its Financial Reporting Function as follows:
    (a) Khee San shall appoint an external Auditor (who is registered with the AOB) to evaluate the adequacy of the scope, functions, competency and resources of Khee San's financial reporting function and make the appropriate recommendation to improve Khee San's Financial Reporting Function ("Assessment of Financial Reporting Function");

    (b) Khee San's Board of Directors shall assess the external Auditor's findings on the Assessment of Financial Reporting Function and take appropriate steps;

    (c) Khee San shall highlight in its next audited financial statements and announce to Bursa (upon completion of the following remedial action) the following:

    • the appropriate action the Company has taken, given the CMSA breaches highlighted above; and
    • the actions that the Board of Directors has taken in addressing the SC's directive in relation to the CMSA breaches highlighted above.
  5. The directive to address the Financial Reporting Function must be completed by KHEESAN within 3 months from Re-audit and re-issuance of accounts.
21 May 2018
44. Breach of section 354(1)(a) of the CMSA read together with Regulation 4(1) of the SIR Dato' Sri Liew Kuek Hin Failure to comply with the relevant MFRS in relation to Khee San's AFS 2015 and AFS 2016.
  • Reprimand;
  • Penalty of RM 196,000 for breaches with respect to AFS 2015;
  • Penalty of RM196,000 for breaches with respect to AFS 2016
21 1May 208
45. Breach of section 354(1)(a) of the CMSA read together with Regulation 4(1) of the SIR Huang Yan Teo Failure to comply with the relevant MFRS in relation to Khee San's AFS 2015 and AFS 2016.
  • Reprimand;
  • Penalty of RM 196,000 for breaches with respect to AFS 2015;
  • Penalty of RM196,000 for breaches with respect to AFS 2016
21 May 2018
46. Breach of section 354(1)(a) of the CMSA read together with Regulation 4(1) of the SIR Leslie Looi Meng Failure to comply with the relevant MFRS in relation to Khee San's AFS 2015 and AFS 2016.
  • Reprimand;
  • Penalty of RM 196,000 for breaches with respect to AFS 2015;
  • Penalty of RM196,000 for breaches with respect to AFS 2016
21 May 2018
47. Breach of section 354(1)(a) of the CMSA read together with Regulation 4(1) of the SIR Dato' Sri Liew Yew Chung Failure to comply with the relevant MFRS in relation to Khee San's AFS 2015 and AFS 2016.
  • Reprimand;
  • Penalty of RM 171,500 for breaches with respect to AFS 2015;
  • Penalty of RM171,500 for breaches with respect to AFS 2016
21 May 2018
48. Breach of section 354(1)(a) of the CMSA read together with Regulation 4(1) of the SIR Liew Yet Mei Failure to comply with the relevant MFRS in relation to Khee San's AFS 2015 and AFS 2016.
  • Reprimand;
  • Penalty of RM 171,500 for breaches with respect to AFS 2015;
  • Penalty of RM171,500 for breaches with respect to AFS 2016
21 May 2018
49. Breach of Section 354(1)(b)(ii) of the Capital Market and Services Act 2007 ("CMSA") read together with Paragraphs 4.05 and 4.06, Section B, Part 2 of the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework ("LOLA Guidelines"). HSBC Bank Malaysia Berhad ("HSBC Bank") Delay of 1 business day in submitting the post-issuance reports of 8 structured product programmes. SC imposed a penalty of RM8,000 against HSBC Bank. 5 February 2018
50. HSBC Amanah Malaysia Berhad ("HSBC Amanah") Delay of 1 business day in submitting the post-issuance report of a structured product programme. SC imposed a penalty of RM1,000 against HSBC Amanah. 5 February 2018
51. Breach of Section 356(1)(a) of the CMSA read together with Paragraphs 4.17 and 4.18(e), Section B, Part 1 of the LOLA Guidelines. Muamalat Invest Sdn Bhd ("Muamalat Invest"), a holder of Capital Market Services License for fund management. Delay of 1 business day in submitting the monthly statistical returns of a wholesale fund. SC imposed a penalty of RM1,000 against Muamalat Invest. 5 February 2018
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