Fima is the first broker under the SC-Danaharta broker scheme to have had its trading restrictions removed since the introduction of this scheme, which was first announced on 3 November 1998. The SC views this as a notable achievement in ongoing efforts to resolve the problems of troubled brokers.
The trading restrictions had been imposed on Fima since 1 December 1997 following its failure to comply with the capital and other prudential standards of the securities laws and KLSE Rules. Special Administrators were subsequently appointed to the company on 4 January 1999 by Pengurusan Danaharta Nasional Bhd ("Danaharta"). The regularisation of Fima's financial position came about following the successful implementation of a workout proposal formulated by the Special Administrators.
As part of the workout plan, Fima has appointed PricewaterhouseCoopers as the independent Financial Monitoring Accountant to monitor the performance of the company and the implementation of the workout proposal to further ensure the financial health of the company.
The SC continues to review the progress of the broker scheme and expects that the other ten brokers under Danaharta-appointed Special Administrators will also see a timely resolution.