Regulatory Settlements in 2021

Regulatory Settlement with Chan Choo Sing

On 27.10.2021, Chan Choo Sing (“Chan”) entered into a regulatory settlement with the SC to settle civil claims that the SC was proposing to institute against him in relation to insider trading of HPI Resources Berhad (HPI) shares.

The SC alleged that Chan had traded 118,000 HPI shares between 15.3.2011 and 5.5.2011 while in possession of inside information pertaining to the acquisition of HPI by Oji Paper Co. Ltd, as announced by HPI on 15.6.2011, in breach of section 188(2) of the Capital Market and Services Act 2007 (“CMSA”).

It was further alleged that Chan had communicated such inside information to one Tan Sri Dato’ Tan Seng Leong on 27.4.2011 contrary to section 188(3) CMSA.

The settlement was reached following a letter of demand sent on 9.8.2021 by the SC pursuant to its civil enforcement powers under the securities laws. The settlement included, amongst others, the following terms:

  • Chan to pay SC the sum of RM1,011,157.20 which is equivalent to three times the difference between the price at which he acquired the shares and the price at which they would have been likely to have been acquired at the time of acquisition, if the information had been generally available;
  • Chan to cease trading in any shares and securities of any public listed companies in Bursa Malaysia for a period of one (1) year from the date of the Settlement Agreement including but not limited to existing and future shares and securities held and/or to be held in his name directly and/or held by any of his agents, employees, affiliates in any manner whatsoever;
  • Chan to resign from all Chief Executive Officer positions, directorships, and/or management positions in public listed companies in Bursa Malaysia no later than the expiry of two (2) years from the date of this Settlement Agreement. He also undertook not to accept any position as Chief Executive Officer or director or to be involved in the management, whether directly or indirectly, of any public listed company in Bursa Malaysia for a period of one (1) year thereafter;

that the regulatory settlement is made without admission or denial of liability.

Regulatory Settlement with Dato’ Jamal Bin Mohd Aris

On 1 November 2021, the SC entered into a settlement with Dato’ Jamal Bin Mohd Aris (‘Dato’ Jamal’) in the sum of RM1,644,152.80 when he agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against him for insider trading in the shares of Perak Corporations Berhad (‘Perak Corp’) between 4 October 2013 and 3 January 2014, contrary to section 188(2)(a) and/or in the alternative, section 370(c) of the Capital Markets and Services Act 2007 (CMSA). The inside information was relating to or concerning an announcement made by Perak Corp to Bursa Malaysia Berhad that its Board of Directors had received a letter from Perbadanan Kemajuan Negeri Perak, Fast Continent Sdn Bhd, Cherry Blossom Sdn Bhd and Perak Equity Sdn Bhd, requesting Perak Corp to undertake a selective capital reduction and repayment exercise (‘Proposed SCR’) pursuant to Section 64 of the Companies Act 1965 whereby pursuant to the Proposed SCR, the entitled shareholders of Perak Corp would receive a total cash payment of approximately RM183,696,228.00 which represents a cash amount of RM3.90 per Perak Corp share. The announcement was made on Bursa Malaysia on 6 January 2014.

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum Dato’ Jamal was required to disgorge was equivalent to 2 times the difference between the price at which the shares were acquired and the price at which they would have been likely to have been acquired of at the time of the acquisition, if the information had been generally available. The monies recovered will be applied in accordance with section 201(7) of the CMSA.

Regulatory Settlement with Dato’ Sreesanthan a/l Eliathamby

On 13 October 2021, the SC entered into a settlement with Dato’ Sreesanthan a/l Eliathamby (‘Sreesanthan’) in the sum of RM900,000.00 when he agreed without admission or denial of liability in respect of the shares acquired in:

  1. Sime Darby Berhad (‘Sime’) on 9 October 2006, 10 October 2006 & 14 November 2006;
  2. Maxis Communications Berhad (‘Maxis’) on 25 April 2007 & 27 April 2007;
  3. UEM World Berhad (‘UEM’) on 13 February 2008; and
  4. VADS Berhad (‘VADS’) on 18 September 2008;

as referred to in the criminal charges vide Kuala Lumpur Sessions Court Criminal Charges No.: 62SC-(575-577)-07/2012 and criminal appeal vide High Court Criminal Appeal No. WA-42LB-1-01/2021.

The settlement was reached following Sreesanthan’s letter of representation to the Honourable Attorney General of Malaysia.

Previously, Sreesanthan was facing criminal charges in respect of the shares acquired in Sime, Maxis, UEM and VADS.

Following this settlement, the criminal charges against Sreesanthan were discontinued upon the instruction of the Attorney General’s Chambers. Similarly, the criminal appeal was also withdrawn following this settlement. The details of the criminal actions can be found here:
https://www.sc.com.my/regulation/enforcement/actions/criminal-prosecution/updates-on-criminal-prosecution-in-2021

The monies recovered will be applied in accordance with section 201(7) of the CMSA.

Regulatory settlement with Chin Yong Shya

On 16 September 2021, the SC entered into a settlement with Chin Yong Shya (‘Jasmine’) in the sum of RM45,976.18 when she agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against her for insider trading in the shares of INS Bioscience Berhad on 29 August 2012, contrary to section 188(2) of the Capital Markets and Services Act 2007 (CMSA). The inside information was relating to or concerning INS Bioscience Berhad (‘INSBIO’) being an Affected Listed Issuer as INSBIO triggered Guidance Note 3 (‘GN3’) of the ACE Market Listing Requirements. The announcement was made on Bursa Malaysia on 30 August 2012 (‘GN3 Announcement’).

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum Jasmine was required to disgorge was equivalent to 1 time the difference between the price at which the shares were disposed and the price at which they would have been likely to have been disposed of at the time of the disposal, if the information had been generally available. The monies recovered will be applied in accordance with section 201(7) of the CMSA.

Regulatory settlement with Oh Kok Boon

On 21 July 2021, the SC entered into a settlement with Oh Kok Boon (‘Oh’) in the sum of RM354,358.62 when he agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against him for insider trading in the shares of INS Bioscience Berhad between 24 August and 29 August 2012, contrary to section 188(2) of the Capital Markets and Services Act 2007 (CMSA). The inside information was relating to or concerning INS Bioscience Berhad (‘INSBIO’) being an Affected Listed Issuer as INSBIO triggered Guidance Note 3 (‘GN3’) of the ACE Market Listing Requirements. The announcement was made on Bursa Malaysia on 30 August 2012 (‘GN3 Announcement’).

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum Oh Kok Boon was required to disgorge was equivalent to 1.5 times the difference between the price at which the shares were disposed and the price at which they would have been likely to have been disposed of at the time of the disposal, if the information had been generally available. The monies recovered will be applied in accordance with section 201(7) of the CMSA.

Regulatory settlement with Wong Seng Tong

On 21 July 2021, the SC entered into a settlement with Wong Seng Tong (‘Wong’) in the sum of RM413,469.53 when he agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against him for:

  • Communicating the inside information relating to or concerning INS Bioscience Berhad (‘INSBIO’) being an Affected Listed Issuer as INSBIO triggered Guidance Note 3 (‘GN3’) of the ACE Market Listing Requirements. The announcement was made on Bursa Malaysia on 30 August 2012 (‘GN3 Announcement’). The inside information pertaining to the GN3 Announcement was communicated to one Yeat Siaw Ping (‘Yeat’) and Oh Kok Boon (‘Oh’), contrary to section 188(3)(a) of the Capital Markets & Services Act 2007; and/or
  • Procuring both Yeat and Oh to dispose the shares between 24 August 2012 and 30 August 2012, contrary to section 188(2)(b) of the CMSA. 

Wong Seng Tong was the Executive Director of INSBIO at the material time.

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. The amount disgorged from Wong was equivalent to 1 time the difference between the price at which the shares were disposed and the price at which they would have been likely to have been disposed of at the time of the disposal, if the information had been generally available. The monies recovered will be applied in accordance with section 201(7) of the CMSA.

Regulatory settlement with Yeat Siaw Ping

On 26 July 2021, the SC entered into a settlement with Yeat Siaw Ping in the sum of RM265,845.68 when he agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute against him for insider trading in the shares of INS Bioscience Berhad between 27 August and 30 August 2012, contrary to section 188(2) of the Capital Markets and Services Act 2007 (CMSA). The inside information was relating to or concerning INS Bioscience Berhad (‘INSBIO’) being an Affected Listed Issuer as INSBIO triggered Guidance Note 3 (‘GN3’) of the ACE Market Listing Requirements. The announcement was made on Bursa Malaysia on 30 August 2012 (‘GN3 Announcement’).

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws, where the sum Yeat Siaw Ping was required to disgorge was equivalent to 1.5 times the difference between the price at which the shares were disposed and the price at which they would have been likely to have been disposed of at the time of the disposal, if the information had been generally available. The monies recovered will be applied in accordance with section 201(7) of the CMSA.

Regulatory Settlement with Ng Kok Choon

On 15 April 2021, Ng Kok Choon (“Ng”) entered into a settlement with the SC in the sum of RM164,460.00 when he agreed without admission or denial of liability to settle a claim that the SC was proposing to institute against him for disposing 37,000 Globetronics Technology Berhad (“GTB”) shares through his account and his wife, Yap Pheng Pheng’s account between 6 April 2016 and 22 April 2016 while in possession of inside information contrary to section 188(2) of the Capital Markets and Services Act 2007 (“CMSA”). The inside information was in relation to or connected to the decline in GBT’s group revenue and profit before tax by 24% and 69% respectively for the financial period ended 31 March 2016 compared to the preceding quarter.

The Unaudited 1st Quarter Report on the Consolidated Results of GBT for the Financial Period ended 31 March 2016 was announced by GBT to the public via a Bursa Announcement dated 26 April 2016. At the material time, Ng was the Chief Financial Officer of GTB.

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. The amount disgorged from Ng is equivalent to three times the difference between the price at which the shares were disposed and the price at which the shares would have been likely to have been disposed at the time of the disposal, if the information had been generally available. The monies recovered will be applied in accordance with section 201(6) of the CMSA.

Regulatory Settlement with Choong Lai Kwan

On 15 April 2021, Choong Lai Kwan (“Choong”) entered into a settlement with the SC in the sum of RM43,800.00 when she agreed without admission or denial of liability to settle a claim that the SC was proposing to institute against her for disposing 10,000 Globetronics Technology Berhad (“GTB”) shares through her account on 21 April 2016 while in possession of inside information contrary to section 188(2) of the Capital Markets and Services Act 2007 (“CMSA”). The inside information was in relation to or connected to the decline in GBT’s group revenue and profit before tax by 24% and 69% respectively for the financial period ended 31 March 2016 compared to the preceding quarter.

The Unaudited 1st Quarter Report on the Consolidated Results of GBT for the Financial Period ended 31 March 2016 was announced by GBT to the public via a Bursa Announcement dated 26 April 2016. At the material time, Choong was the Senior Finance Manager of ISO Technology Sdn Bhd (“ISO Technology”), a subsidiary of GTB.

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. The amount disgorged from Choong is equivalent to three times the difference between the price at which the shares were disposed and the price at which the shares would have been likely to have been disposed at the time of the disposal, if the information had been generally available. The monies recovered will be applied in accordance with section 201(6) of the CMSA.

Regulatory Settlement With AMMB Holdings Berhad

On 26 February 2021, it was reported that AMMB Holdings Berhad on behalf of AmBank (M) Bhd (“AmBank”), AmInvestment Bank Berhad (“AmInvestment”) and AmBank Islamic Berhad (referred to herewith as “AmBank Group”) have agreed to a global settlement with the Government of Malaysia (“GOM”) and 1Malaysia Development Berhad (“1MDB”) on all outstanding claims and actions in relation to the AmBank Group’s involvement in the 1MDB matter for a cash payment of RM2,830,000,000.00.

In line with the global settlement entered into between GOM, 1MDB and AmBank Group, the SC had also entered into an arrangement with AmBank Group to settle all pending regulatory actions relating to or in connection with AmBank Group’s dealings with 1MDB including the issuance of the RM5 billion Islamic Medium Term Notes by Terengganu Investment Authority Berhad (as 1MDB was known then) (“TIA IMTN”) and the issuance of the RM2.4 billion Sukuk Murabahah by Bandar Malaysia Sdn Bhd (“BMSB Sukuk Murabahah”).

The settlement of the TIA IMTN is made on a without admission or denial of liability basis by AmBank Group. AmInvestment acknowledges the breaches of securities laws identified by the SC on the matter relating to the BMSB Sukuk Murabahah.

As part of the SC’s settlement terms, AmInvestment is required to take corrective measures, including putting in place systems and processes to strengthen their due diligence framework for submission of corporate proposals relating to debentures and sukuk.

 

 
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