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

On 16 January 2019, RHBIB filed a review application to the SC against the breaches and sanctions imposed. On 27 May 2019, the SC decided to affirm the breaches and sanctions. 

18 December 2018

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

Chan Cheong Yuen (“Chan”), 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

On 16 January 2019, Chan filed a review application to the SC against the breaches and sanctions imposed. On 27 May 2019, the SC decided to affirm the breaches and sanctions. 

18 December 2018

• Suspension of 1 month

• Reprimand

• Reprimand

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

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. 

1. Reprimand; and
2. Penalty of RM480,000.

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.  

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%.

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

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

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

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

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

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")

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.

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.

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")

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 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.

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")

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.

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

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

On 7 August 2018, Cho Seongtaeg filed a review application to the SC against the sanctions imposed. On 15 February 2019, the SC dismissed Cho Seongtaeg's review application and enhanced his sanctions by imposing a penalty of RM220,500 for the breach.

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

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.

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

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.

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

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.

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

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.

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

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.

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

• 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.

• Reprimand
• Penalty of RM50,000.00

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")

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

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")

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

• Reprimand

• Reprimand;
• Penalty of RM 196,000 for breaches with respect to AFS 2015;
• Penalty of RM196,000 for breaches with respect to 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

• Reprimand;
• Penalty of RM 196,000 for breaches with respect to AFS 2015;
• Penalty of RM196,000 for breaches with respect to 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

• Reprimand;
• Penalty of RM 171,500 for breaches with respect to AFS 2015;
• Penalty of RM171,500 for breaches with respect to AFS 2016