The SC would like to clarify that under the SC’s Licensing Handbook, a Capital Market Services Licence (CMSL) holder should seek the SC’s prior approval for the appointment of its chief executive. In doing so, a CMSL holder and its board of directors are required to conduct due diligence on the individual’s capability and competence to lead the licensed entity. This includes assessing, amongst others, the individual’s ability to exercise due skill and diligence in assuming the position. In addition, the SC will also conduct regulatory assessments on the background of the individual with relevant law enforcement agencies.

The SC’s requirements and practices are comparable with the standards applied by other capital market regulators in the region.

As a CMSL holder, PNB is required to ensure that all information submitted to the SC for the appointment of its former PGCE, including his work experience and academic qualifications provided in the application forms and supporting documents, are true and correct after it has conducted due diligence enquiries. This requirement is clearly stated in the relevant application form. In this regard, the company had declared to the SC that all information provided in its submission to the SC for the appointment of its former PGCE are true and correct.

Recently, the SC was notified of discrepancies in the company’s submission to the SC in relation to its former PGCE’s academic qualifications and work experience, and has since received confirmation of the discrepancies in the submission. The SC had sought clarification from relevant parties regarding these discrepancies. PNB’s response to the SC’s enquiries is still pending.