Regulatory Settlements in 2021

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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