OAM had concealed receipt of funds from clients by keeping separate books that were located outside its office and repeatedly submitting declarations to the SC that it was inactive and had no funds under management. However, preliminary investigations revealed that OAM did receive monies from Koperasi Angkatan Tentera. The SC is in the midst of tracing the movement of funds by OAM.

OAM is now prohibited from undertaking any further fund management activities. The SC advises all parties who have made investments through OAM to contact the SC Complaints Unit at 03-6204 8999.

Fund management companies are required to report and confirm that clients’ assets are kept under separate trust accounts as required by law. They are required to submit half-yearly reports and an annual auditors’ declaration to the SC on the funds managed. Fund management companies are also audited by the SC.

The SC will not tolerate any non-compliance and will take severe action against errant fund management companies and their directors. Companies or individuals found in breach of securities laws governing trust accounts and submission of statements to the SC can be fined up to RM3 million or imprisoned up to 10 years or both. Recently, two directors of Metrowangsa Asset Management Sdn Bhd were charged with these offences. The matter is pending trial. The SC had earlier revoked Metrowangsa’s fund manager’s licence as well as the licences of its representatives.