Justice Dato’ Abdul Aziz Bin Abdul Rahim, in delivering the decision of the Court of Appeal, stated that fund managers cannot adopt a simplistic approach when reporting to the SC the funds under their management. The Court of Appeal rejected the defence that Metrowangsa did not declare the full amounts to the SC because it had transferred a portion of the funds under its management to a third party, namely one Asasi Trade and Marketing Sdn Bhd which was managed by an individual named Ahmad bin Hassan. This, he said, was not acceptable as it runs contrary to the agreement entered into between Metrowangsa and its clients. He further stated that the failure to appreciate this issue resulted in the misdirection by the Sessions and High Courts and hence the acquittal orders.

In pressing for a deterrent sentence, Deputy Public Prosecutor Ahmad Fairuz Zainol Abidin stressed that fund managers who are the custodians of client funds must be accountable and responsible over all sums of monies they collect. He also submitted that the failure of fund managers to uphold their duties professionally to safeguard the interest of their clients is a fundamental breach of the trust and confidence placed upon them which will lead to the breakdown of the fund management industry. This industry, he submitted, forms an integral part of a healthy and vibrant capital market.

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