• Breach of Section 212(5) of the CMSA;
• Breach of Section 92A(2)(b) of the CMSA; and
• Breach of Section 367(1) of the CMSA,

read together with Section 354(1)(a) of the CMSA.

Nik Zamri Bin Abdul Majid  (CEO of MPDT Capital Berhad)

• Failure to seek SC’s authorisation prior to offer for purchase of bonds and failure to register with the SC a disclosure document for the offer of the bonds
• Made false statement in the offer letters to the investor
• As the Chief Executive Officer (CEO) of MPDT Capital Berhad at the material time, he is deemed to have committed the breaches under Section 212(5) and Section 92A(2)(b) of the CMSA.

1. Reprimand; and
2. Penalty of  RM439,000

10 June 2024

Breach of the following:
Paragraphs 3.16(a) and 4.3(c) of the Federation of Investment Managers Malaysia's Code of Ethics and Rules of Professional Conduct (Unit Trust Funds) as at 13 January 2020 read together with Section 354(b)(iii) of the Capital Markets and Services Act 2007 (“CMSA”) ("1st Breach"); and

1st Breach:
Failure to have in place adequate systems, policies and procedures to accurately identify, verify and document transactions of investors which resulted in misappropriation of potential investors’ monies intended for investments to KIB. 

2nd Breach:

1. Failure to conduct on-going due diligence and scrutiny of KIB's customers throughout the course of the business relationship and to monitor the customers' accounts on a regular basis to ensure that transactions conducted are consistent with, amongst others, KIB's knowledge of the customers and their risk profile, as well as monitoring of suspicious transactions; and
   
   
2. Failure to clarify the economic background and purpose of any transaction or business relationship as well as failure to report suspicious transactions.

1. Reprimand for each of the two (2) breaches;
2. Directive to carry out the following:
   1. KIB shall allocate and utilise not less than RM720,000 within three (3) years from the date of the action towards:
      1. continuous enhancement of KIB's monitoring systems and internal          control measures with respect to its unit trust activities; and
         
         
      2. ensuring effective implementation of its controls and processes including upskilling of staff through training or capacity building to ensure operational effectiveness of KIB's controls and processes as well as AML/CFT requirements and that staff are kept abreast of developments on AML/CFT requirements, issues and trends.
   2. KIB shall report to the SC on the implementation of paragraph 2(a) above every six (6) months from the date of action until the end of the three (3) year period;
      
      
   3. KIB shall appoint an independent consultant to review and enhance KIB's internal controls in relation to its unit trust activities which shall be completed within six (6) months from the date of the action which would include the following:
      1. To review that sufficient controls are in place to accurately identify, verify and document all investments transactions and to ensure that all lapses in controls are effectively rectified; and
         
         
      2. To review the effectiveness of KIB's current and planned initiatives particularly in relation to system enhancements, ongoing monitoring of clients' transactions and monitoring of marketing and distribution activities (including the competency of Unit Trust Consultants involved).
         
         
   4. KIB shall report to the SC on the implementation of paragraph 2(c) above within six (6) months from the date of action; and
      
      
   5. KIB shall table these sanctions to KIB’s Board of Directors and forward the Board minutes to the SC within one (1) month from the date of action.
      
      
3. Directive to carry out the following:
   1. Restitution to the affected clients who had suffered losses arising from the misconduct of Alan and Amran respectively, as may be applicable and in particular, the remaining three (3) complainants of Alan (as four (4) complainants had been compensated by KIB), who had not been compensated for their losses totalling RM320,000.00 within one (1) month from the date of action; and
      
      
   2. KIB shall report to the SC on the implementation of the restitution exercise set out in paragraph 3(a) above within one (1) month from the date of action.

30 May 2024

Breach 1
Section 92A(2)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with Section 354(1)(a) of the CMSA

Breach 2
Paragraph 11.1(a) of the Directives on Conduct of Business (Directive No. 5-001) (“Bursa Directives”), read together with Section 354(1)(b)(i) of the CMSA

Breach 3
Rule 11.02(3A) of the Rules of Bursa Malaysia Securities Berhad (“Bursa Rules”), read together with Section 354(1)(b)(i) of the CMSA

Breach 4
Rule 3.14(k) of the Bursa Rules read together with Section 354(1)(b)(i) of the CMSA

Breach 5
Paragraph 11.3(2) of the Bursa Directives read together with Section 354(1)(b)(i) of the CMSA

Breach 6
Rule 3.47(1)(g) of the Bursa Rules read together with Section 354(1)(b)(i) of the CMSA

Koh Chin Yoke (“Koh”)

Breach 1
Koh issued a total of 26 falsified documents to his clients to gain their confidence, therefore inducing them to increase their investment with him.

Breach 2
Koh entered into profit-sharing arrangements with his clients.

Breach 3
Koh entered into a commission-sharing arrangement with a person other than the participating organization.

Breach 4
Koh carried out discretionary trading on his clients’ accounts despite the participating organisation’s prohibition on its dealer’s representatives from carrying out any discretionary trading.

Breach 5
Koh had carried out trading n a client’s account based on third-party instructions without any written authorisation from the client.

Breach 6
Koh had incorporated a company in which he was the sole director and held 100% shareholding during the relevant period and hence, held interest in a business. Koh held interest in another business without obtaining the participating organization’s approval.  

1. Reprimand for each of the six (6) breaches.
2. Penalty in the total sum of RM2,587,010 for Breaches 1, 2, 4 and 5.

29 May 2024

1. Core Principle 6 of Paragraph 3.01 of the Guidelines on Market Conduct and Business Practices for Stockbroking Companies and Licensed Representatives (“Guidelines”);
2. Paragraphs 12.01, 12.02 and 12.03, read together with Illustration 8 of the Guidelines,

(ii) Breach of Section 354(1)(b)(i) of the CMSA read together with Rule 5.16 of the Rules of Bursa Malaysia Securities Berhad (“Rules”) read together with Paragraph 11.3 of the Directives on Conduct of Business No. 5-001 issued by Bursa Malaysia Securities Berhad (“Directives”); and

(iii)   Breach of Section 354(1)(a) of the CMSA read together with Section 25(4) and 29A of the Securities Industry (Central Depositories) Act 1991 (“SICDA”).

1. Radzim failed to give priority to his customer’s interest as he dealt for his own/wife’s benefit using Nor Ashikin’s CDS Account ahead of his customer’s buy orders.
2. As a holder of CMSRL for dealing in securities, Radzim’s conduct amounts to front running which constitutes market abuses and unethical business conduct and consequently, affected the fair and orderly operation of the market.
3. As a dealer representative for his customers, Radzim:
   

   (a) Failed to act honestly and fairly;

   (b) Failed to act in the best interest of his customer;

   (c) Failed to give priority to the execution of orders given by his customer over execution of his own and/or Nor Ashikin’s orders in relation to the securities of the same class; and

   (d) Front run his customer.

4. Breach Section 25(4) of the SICDA for causing his shares to be deposited and maintained in Nor Ashikin’s CDS Account; and
5. Breach of Section 29A of the SICDA as dealings in respect of his shares were effected by him in Nor Ashikin’s CDS Account
   

(a)    Reprimand; and

(b)    Penalty of RM2,600,845.38.

25 September 2023

On 13 October 2023 and 15 November 2023, Radzim had applied to the SC for a review of its own decision to sanction Radzim.

The review application was dismissed by the SC on 4 April 2024.

Nor Ashikin binti Khamis
(“Nor Ashikin”)

1. Nor Ashikin breached Section 25(4) of the SICDA for permitting Radzim’s shares to be deposited and maintained in her CDS Account and failing to ensure that her CDS Account only contain her own shares and not any other third parties, including Radzim; and
2. Nor Ashikin breached Section 29A of the SICDA for facilitating or allowing the dealings in respect of Radzim’s shares in her CDS Account by Radzim.

1. Reprimand;
2. Penalty of RM87,750.00; and
3. Directive to mitigate the effects of the Breaches, where she is required to close her Central Depository System (“CDS”) account number of 052-001-042366492/073-001-042366492 maintained at Kenanga Investment Bank Berhad under the name of Nor Ashikin binti Khamis within fourteen (14) business days from the date of the decision letter.

25 September 2023

On 13 October 2023 and 15 November 2023, Nor Ashikin had applied to the SC for a review of its own decision to sanction Nor Ashikin

The review application was dismissed by the SC on 4 April 2024.

Breach of Section 71 of the Capital Markets and Services Act 2007 ("CMSA") read together with Section 354(1)(a) of the CMSA for:

1. making a false statement/ declaration in his Capital Markets Services Representative’s Licence (“CMSRL”) application to the SC; and
2. making a false declaration that the information provided in his CMSRL application to the SC is true and correct.

LCK had falsely stated/ declared in his CMSRL application to the SC that he had not been subjected to any form of disciplinary proceedings or actions by any professional or regulatory body or employer, and that all the information provided in the CMSRL application are true and correct. However, it was found that LCK had in fact been subjected to disciplinary proceedings or action by his former employer which had resulted in his termination.

• Reprimand;
• Revocation of LCK’s CMSRL pursuant to:
  1. Section 72(2)(b)(i) read together with Section 65(1)(c) of the CMSA; and
  2. Section 72(2)(b)(iv) read together with Paragraph 7.03(1) of the SC's Licensing Handbook and Section 65(1)(c) of the CMSA.

1. Penalty of RM4,000 for the two (2) breaches; and
2. Enforcement of the relevant terms of the Enforceable Undertaking pursuant to an earlier Sanction Letter dated 11 July 2023, requiring payment of the balance Penalty of RM11,200 referred to in the Sanction Letter.

Details of ATM’s earlier sanction can be found here.

JIA Asset Management Sdn Bhd 

Delay of four (4) business days in the submission of the monthly statistical returns for its wholesale fund known as  JIA AM Durian Growth Opportunities Fund to the SC.

Penalty of RM4,000.00

22 February 2024 

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

(i)  Section 58 of the CMSA; and

(ii) Section 212(5) of the CMSA.

Midana Management Sdn Bhd (“Midana Management”)

1.  Midana Management carried on a business of the regulated activity of dealing in securities without holding a Capital Markets Services Licence;
2. Midana Management failed to seek recognition by the Securities Commission Malaysia (“SC”) and failed to register with the SC a disclosure document, in relation to the making available, offer for subscription or purchase, or issue an invitation to subscribe for or purchase of foreign shares in Malaysia.

Reprimand

19 January 2024

Breach of Section 354(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with Section 212(5) of the CMSA.

Midana Capital Inc. (“Midana Capital”)

Midana Capital failed to seek recognition by the Securities Commission Malaysia (“SC”) and failed to register with the SC a disclosure document, in relation to the making available, offer for subscription or purchase, or issue an invitation to subscribe for or purchase of foreign shares in Malaysia.

Reprimand

19 January 2024

Breach of Section 354(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with Section 212(5) of the CMSA.

Midana Investment Holdings Ltd (“Midana Investment”)

Midana Investment failed to seek recognition by the Securities Commission Malaysia (“SC”) and failed to register with the SC a disclosure document, in relation to the making available, offer for subscription or purchase, or issue an invitation to subscribe for or purchase of foreign shares in Malaysia.

Reprimand

19 January 2024

Breach of Section 354(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with Section 212(5) of the CMSA.

Midana S1 Investment Holdings Pte Ltd (“Midana S1”)

Midana S1 failed to seek recognition by the Securities Commission Malaysia (“SC”) and failed to register with the SC a disclosure document, in relation to the making available, offer for subscription or purchase, or issue an invitation to subscribe for or purchase of foreign shares in Malaysia.

Reprimand

19 January 2024

(i) Breach of Section 354(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with Section 58 of the CMSA; and

(ii)Breach of Section 354(1)(a) of the CMSA, read together with Section 212(5) of the CMSA and Section 367 of the CMSA.

Tan Liang Swee (“Allan Tan”)

1. Allan Tan carried on a business of the regulated activity of dealing in securities without holding a Capital Markets Services Licence;
2. As a director of Midana Entities, Allan Tan breached Section 212(5) of the CMSA for Midana’s failure to seek recognition by the Securities Commission Malaysia (“SC”) and failed to register with the SC a disclosure document, in relation to the making available, offer for subscription or purchase, or issue an invitation to subscribe for or purchase of foreign shares in Malaysia.

1. Reprimand; and
2. Penalty of RM1,372,000.00

19 January 2024

(i) Breach of Section 354(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with Section 58 of the CMSA; and

(ii) Breach of Section 354(1)(a) of the CMSA, read together with Section 212(5) of the CMSA and Section 367 of the CMSA.

Tan Gim Lin (“Chris Tan”)

1. Chris Tan carried on a business of the regulated activity of dealing in securities without holding a Capital Markets Services Licence;
2. As a director of Midana Entities, Chris Tan breached Section 212(5) of the CMSA for Midana’s failure to seek recognition by the Securities Commission Malaysia (“SC”) and failed to register with the SC a disclosure document, in relation to the making available, offer for subscription or purchase, or issue an invitation to subscribe for or purchase of foreign shares in Malaysia.

1. Reprimand; and
2. Penalty of RM1,372,000.00

19 January 2024

Breach of Paragraph 4.17, Section B, Part 1 of the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework read together with Section 356(1)(a) of the Capital Markets and Services Act 2007

Muamalat Invest Sdn. Bhd.

Delay of four (4) business days in the submission of the monthly statistical returns of six (6) wholesale funds to the SC. 

Penalty of RM24,000.

12 January 2024