Administrative Actions in 2019
No. Nature of Misconduct Parties Involved Brief description of misconduct Action Taken Date of Action

1.

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

  • For engaging in business practices appearing to the SC to be improper or reflect discredit on your method of conducting business;
  • 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

(ii) 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

Chu Li Choon (“CLC”)

a holder of a CMSRL carrying out the regulated activity of dealing in securities
  • Executed  unauthorised share trades in five counters and subscribed  to an investment in structured product without  her client’s authorisation
  • Deceived the client on an investment in a structured  product, when in fact she had invested in another product for him
  • Produced and presented fabricated investment advices / statements to the client in order to conceal the unauthorised transactions executed as well as losses incurred by the client
  • Registered and managed the online trading account on behalf of the client including keeping the password to the account
  • Revocation  of CLC’s CMSRL for dealing in securities under Section 72(2)(b)(i) of the CMSA
  • Penalty of RM100,000

29 January 2019

On 5 March 2019, CLC appealed to the SC against the sanctions imposed.

On 25 April 2019, the SC decided to affirm the sanctions. Revocation of CLC’s CMSRL shall take effect from 10 May 2019.
2.

Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 read together with Section 29A of the Securities Industry (Central Depositories) Act 1991

Azuzay bin Zamani (“Azuzay”)

Allowing one Mohd  Nor bin Abdul Wahid who is not an authorised nominee, to dispose a total of 660,000 units of  Three-A Resources Berhad shares using Azuzay’s securities trading account.

Penalty of RM500,000 20 March 2019
3.

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

China Stationery Limited (“CSL”)

Knowingly causing the furnishing of CSL’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were:

  • CSL’s Quarterly Report on Consolidated Results for the First Quarter Ended 31 March 2015 (“1Q 2015”) until Quarterly Report on Consolidated Results for the Second Quarter Ended 30 June 2017 (“2Q 2017”); and
  • CSL’s Audited Financial Statement for the Financial Year Ended 31 December 2015 (“AFS 2015”) and Audited Financial Statement for the Financial Year Ended 31 December 2016 (“AFS 2016”) 
Reprimand 15 February 2019
4.

Breach of section 354(1)(a) of the CMSA read together with section 317A (1) of the CMSA (“Breach 1”)

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 2”)

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 section 152(1) Notices of the SCMA (“Breach 3”)
Chan Fung @ Kwan Wing Yin

Breach 1
Causing CSL’s wholly owned subsidiaries to be a guarantor for Chan Fung’s personal loans which were done with the intention of causing wrongful loss to the related corporation of CSL.

Breach 2
Knowingly causing the furnishing of CSL’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were:

  • CSL’s 1Q 2015 until 2Q 2017; and
  • CSL’s AFS 2015 and AFS 2016

Breach 3
Failure to provide any response to the section 152 (1) Notices which were sent by the SC to Chan Fung.

  • Reprimand for each breach; and
  • The SC has issued a public statement to the effect that, in the SC’s opinion, the retention of office by Chan Fung as a Director of CSL is prejudicial to the public interest
15 February 2019
5.

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 1”)

Breach of section 354(1)(a) of the CMSA read together with section 137(1) of the SCMA for failure to comply with section 152(1) Notices of the SCMA (“Breach 2”)

Angus Kwan Chun Jut

Breach 1
Knowingly causing the furnishing of CSL’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were:

  • CSL’s 1Q 2015 until 2Q 2017; and
  • CSL’s AFS 2015 and AFS 2016

Breach 2
Failure to provide any response to the section 152(1) Notices which were sent by the SC to Angus Kwan.

Reprimand for each breach

 

15 February 2019
6.

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA

Herman Widjaja

Knowingly causing the furnishing of CSL’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were:

  • CSL’s 1Q 2015 until 2Q 2017; and
  • CSL’s AFS 2015 and AFS 2016
Reprimand 15 February 2019
7.

Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with section 368(1)(a) of the CMSA (“Breach 1”)

Breach of section 354(1)(a) of the CMSA read together with section 369(b)(B) of the CMSA (“Breach 2”)

Breach of section 354(1)(a) of the CMSA read together with section 368(1)(a) of the CMSA (“Breach 3”)

Breach of section 354(1)(a) of the CMSA read together with section 369(b)(B) of the CMSA (“Breach 4”)

Xingquan International Sports Holdings Limited (“Xingquan”)

Breach 1
Recording the loss from the sale of inventory amounting to RMB415.7 million by its wholly owned subsidiary that is false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s Quarterly Report on Consolidated Results for the Fourth Quarter Ended 30 June 2016 (“4Q 2016”) and Audited Financial Statement for the Financial Year Ended 30 June 2016 (“AFS 2016”).

Breach 2
Knowingly causing the furnishing of an agreement between Xingquan’s wholly owned subsidiary and a third party that is false to Bursa Malaysia.

Breach 3
Recording cash and bank balances in 8 bank accounts collectively belonging to Xingquan that are  false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s 4Q 2016 and AFS 2016.

Breach 4
Knowingly causing the furnishing of Xingquan’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were Xingquan’s Quarterly Report on Consolidated Results for the Second Quarter Ended 31 December 2015 (“2Q 2016”) until Quarterly Report on Consolidated Results for the Second Quarter Ended 31 December 2016 (“2Q 2017”) and AFS 2016.

Reprimand for each breach

15 February 2019
8.

Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 1”)

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 2”)

Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 3”)

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 4”)

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  section 152(1) Notices of the SCMA (“Breach 5”)

 

Dato Wu Qingquan

Breach 1
Recording the loss from the sale of inventory amounting to RMB415.7 million by its wholly owned subsidiary that is false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s 4Q 2016 and AFS 2016.

Breach 2
Knowingly causing the furnishing of an agreement between Xingquan’s wholly owned subsidiary and a third party that is false to Bursa Malaysia.

Breach 3
Recording cash and bank balances in 8 bank accounts collectively belonging to Xingquan that are false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s 4Q 2016 and AFS 2016.

Breach 4
Knowingly causing the furnishing of Xingquan’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were Xingquan’s 2Q 2016 until 2Q 2017 and AFS 2016.

Breach 5
Failure to provide any response to the Section 152 (1) Notices which were sent by the SC to Dato’ Wu Qingquan.

  • Reprimand for each breach; and
  • The SC has issued a public statement to the effect that, in the SC’s opinion, the retention of office by Dato’ Wu Qingquan as a Director of Xingquan is prejudicial to the public interest
15 February 2019
9.

Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 1”)

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 2”)

Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 3”)

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 4”)

Breach of section 354(1)(a) of the CMSA read together with section 137(1) of the SCMA for failure to comply with section 152(1) Notices of the SCMA (“Breach 5”)

 

Wu Lianfa

Breach 1
Recording the loss from the sale of inventory amounting to RMB415.7 million by its wholly owned subsidiary that is false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s 4Q 2016 and AFS 2016.

Breach 2
Knowingly causing the furnishing of an agreement between Xingquan’s wholly owned subsidiary and a third party that is false to Bursa Malaysia.

Breach 3
Recording cash and bank balances in 8 bank accounts collectively belonging to Xingquan that are false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s 4Q 2016 and AFS 2016.

Breach 4
Knowingly causing the furnishing of Xingquan’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were Xingquan’s 2Q 2016 until 2Q 2017 and AFS 2016.

Breach 5
Failure to provide any response to the Section 152(1) Notices which were sent by the SC to Wu Lianfa.

  • Reprimand for each breach; and
  • The SC has issued a public statement to the effect that, in the SC’s opinion, the retention of office by Wu Lianfa as a Director of Xingquan is prejudicial to the public interest
15 February 2019
10.

Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 1”)

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 2”)

Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 3”)

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 4”)

 

 

Ng Sio Peng

Breach 1
Recording the loss from the sale of inventory amounting to RMB415.7 million by its wholly owned subsidiary that is false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s 4Q 2016 and AFS 2016.

Breach 2
Knowingly causing the furnishing of an agreement between Xingquan’s wholly owned subsidiary and a third party that is false to Bursa Malaysia.

Breach 3
Recording cash and bank balances in 8 bank accounts collectively belonging to Xingquan that are false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s 4Q 2016 and AFS 2016.

Breach 4
Knowingly causing the furnishing of Xingquan’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were Xingquan’s 2Q 2016 until   Quarterly Report on Consolidated Results for the First Quarter Ended 30 September 2016 (“1Q 2017”) and AFS 2016.

Reprimand for each breach

15 February 2019
11.

Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 1”)

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 2”)

Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 3”)

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 4”)

 

 

Zhou Liyi

Breach 1
Recording the loss from the sale of inventory amounting to RMB415.7 million by its wholly owned subsidiary that is false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s 4Q 2016 and AFS 2016.

Breach 2
Knowingly causing the furnishing of an agreement between Xingquan’s wholly owned subsidiary and a third party that is false to Bursa Malaysia.

Breach 3
Recording cash and bank balances in 8 bank accounts collectively belonging to Xingquan that are false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s 4Q 2016 and AFS 2016.

Breach 4
Knowingly causing the furnishing of Xingquan’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were Xingquan’s 2Q 2016 until 2Q 2017 and AFS 2016.

Reprimand for each breach

21 March 2019
12.

Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with section 368(1)(a) of the CMSA (“Breach 1”)

Breach of section 354(1)(a) of the CMSA read together with section 369(b)(B) of the CMSA (“Breach 2”)

Maxwell International Holdings Berhad (“Maxwell”)

Breach 1
Recording the payment of RMB45.60 million by Maxwell’s wholly owned subsidiary that is false or misleading in any material particular in Maxwell’s books, namely Maxwell’s Quarterly Report on Consolidated Results for the Third Quarter Ended 30 September 2015 (“3Q 2015”), Quarterly Report on Consolidated Results for the Fourth Quarter Ended 31 December 2015 (“4Q 2015”) and Audited Financial Statement for the financial year ended 31 December 2015 (“AFS 2015”).

Breach 2
Knowingly causing the furnishing of Maxwell’s Financial Statements that is  false or misleading to Bursa Malaysia. The Financial Statements concerned were:

  • Maxwell’s Quarterly Report on Consolidated Results for the First Quarter Ended 31 March 2014 (“1Q 2014”) until Quarterly Report on Consolidated Results for the Fourth Quarter Ended 31 December 2016 (“4Q 2016”); and 
Maxwell’s Audited Financial Statement for the financial year ended 31 December 2014 (“AFS 2014”) until Audited Financial Statement for the financial year ended 31 December 2016 (“AFS 2016”)
Reprimand for each breach 18 February 2019
13.

Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 1”)

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 2”)

Breach of section 354(1)(a) of the CMSA read together with section 134(5)(a) of the Securities Commission Malaysia Act 1993 (“SCMA”) for failure to appear before an Investigating Officer of the Securities Commission Malaysia pursuant to section 134(1)(b) of the SCMA (“Breach 3”)
Li Kwai Chun

Breach 1
Recording the payment of RMB45.60 million by Maxwell’s wholly owned subsidiary that is false or misleading in any material particular in Maxwell’s books, namely Maxwell’s 3Q 2015, 4Q 2015 and AFS 2015.

Breach 2
Knowingly causing the furnishing of Maxwell’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were:

  •  Maxwell’s 1Q 2014 until 4Q 2016; and
  •  Maxwell’s AFS 2014 until AFS 2016.

Breach 3
Failure to appear before an Investigating Officer of the SC pursuant to Section 134(1)(b) of the SCMA.

  • Reprimand for each breach
  • The SC has issued a public statement to the effect that, in the SC’s opinion, the retention of office by Li Kwai Chun as a Director of Maxwell is prejudicial to the public interest
18 February 2019
14. Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA Xie Zhenan

Knowingly causing the furnishing of Maxwell’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were:

  • Maxwell’s 1Q 2014 until Quarterly Report on Consolidated Results for the First Quarter Ended 31 March 2015 (“1Q 2015”); and
  • Maxwell’s AFS 2014

Reprimand

 

18 February 2019
15.

Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 1”)

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 2”)

Su DeMou

Breach 1
Recording the payment of RMB45.60 million by Maxwell’s wholly owned subsidiary that is false or misleading in any material particular in Maxwell’s books, namely Maxwell’s AFS 2015.

Breach 2
Knowingly causing the furnishing of Maxwell’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were:

  • Maxwell’s Quarterly Report on Consolidated Results for the First Quarter Ended 31 March 2016 (“1Q 2016”) until 4Q 2016; and 
  • Maxwell’s Audited Financial Statement for the financial year ended 31 December 2015 (“AFS 2015”) and AFS 2016

Reprimand for each breach.

 

18 February 2019
16.

Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 1”)

Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 2”)

Tan Swee Song

Breach 1
Recording the payment of RMB45.60 million by Maxwell’s wholly owned subsidiary that is false or misleading in any particular in Maxwell’s books, namely Maxwell’s 3Q 2015, 4Q 2015 and AFS 2015.

Breach 2
Knowingly causing the furnishing of Maxwell’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were:

  • Maxwell’s 1Q 2014 until 4Q 2016; and
  • Maxwell’s AFS 2014 until AFS 2016.

Reprimand for each breach.

 

18 February 2019
17.

Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 ("CMSA") read together with section 276(3)(b) of the CMSA ("Breach 1")

Breach of section 354(1)(a) of the CMSA read together with section 276(3)(b) of the CMSA ("Breach 2")

Breach of section 354(1)(a) of the CMSA read together with section 276(1) of the CMSA ("Breach 3")

Breach of section 354(1)(a) of the CMSA read together with section 276(1) of the CMSA ("Breach 4")

Deloitte PLT

Failure to immediately report to the SC on irregularities that may have a material effect on the ability of Bandar Malaysia Sdn. Bhd. ("BMSB") to repay any amount under the Sukuk Murabahah Programme issued in 2014 as set out in the Independent Auditors' Report ("IAR") on BMSB's Audited Financial Statements for the financial year ended 31 March 2015 ("AFS 2015") and IAR on 1MDB Real Estate Sdn. Bhd.'s ("1MDB RE") AFS 2015.

Failure to immediately report to the SC on irregularities that may have a material effect on the ability of BMSB to repay any amount under the Sukuk Murabahah Programme issued in 2014 as set out in the IAR on BMSB's Audited Financial Statements for the financial year ended 31 March 2016 ("AFS 2016") and IAR on 1MDB RE's AFS 2016.

Failure to send a copy of BMSB's AFS 2015 to MTrustee Bhd within seven days after furnishing BMSB with the said financial statements.

Failure to send a copy of BMSB's AFS 2016 to MTrustee Bhd within seven days after furnishing BMSB with the said financial statements.

  • Reprimand and Penalty of RM1,000,000 for Breach 1;
  • Reprimand and Penalty of RM1,000,000 for Breach 2;
  • Reprimand and Penalty of RM100,000 for Breach 3; and
  • Reprimand and Penalty of RM100,000 for Breach 4.

[Update: Deloitte PLT has filed a review application to the SC against the sanctions imposed]

 

30 January 2019

18. Breach of Section 354(1)(b)(ii) of the Capital Market and Services Act 2007 (CMSA) read together with Paragraph 4.05 and Paragraph 4.06, Section B, Part 2 of the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework ("LOLA Guidelines") Standard Chartered Bank Malaysia Berhad ("Standard Chartered") Delay of 21 business days in submission of monthly post-issuance report SC imposed a penalty of RM21,000 against Standard Chartered 25 January 2019
19. Breach of Section 356(1)(a) of the CMSA read together with Paragraph 4.07, Section B, Part 3 of the LOLA Guidelines RHB Investment Bank Berhad ("RHB IB"), a holder of Capital Market Services License for dealing in securities, clearing, dealing in derivatives, and advising on corporate finance. Delay of 109 business days in submission of post-issuance notice SC imposed a penalty of RM50,000 against RHB IB
20.

Breach of Section 356(1)(a) of the CMSA read together with Paragraph 4.17, Section B, Part 1 of the LOLA Guidelines

MTC Asset Management (M) Sdn Bhd ("MTC"), a holder of Capital Market Services Licence for fund management Delay of 61 business days submission of annual report
  • Penalty of RM8,000; and
  • Directive for MTC to draft an immediate action plan on how will MTC ensure compliance with all reporting requirements, and subsequently provide a regular update to the SC on the implementation of such plan
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