kasus pasar modal di malaysia

8/10/2019 Kasus Pasar Modal Di Malaysia

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KASUS HUKUM PASAR MODAL DI MALAYSIA 2014

Criminal Prosecution

No.

Nature ofOffence Offender(s)

Facts of Case

Sentence

Criminal Prosecution Initiated Persons Charged

1. Insider trading Chng Poh @ Chng ChongPoh

Chng Poh @ Chng ChongPoh was charged with 58counts of insider trading undersection 188(2)(a) of the Capital

Markets and Services Act(CMSA) 2007.He was alleged

to have traded in the shares ofMalaysia Pacific Corporation

Berhad (MPAC) while inpossession of inside

information relating to a multi-million ringgit joint venturebetween Oriental Pearl City

Properties Sdn Bhd, a whollyowned subsidiary of MPACand AmanahRaya Development

Sdn Bhd, a wholly owned

subsidiary company of AmanahRaya Berhad.

Chng Poh @ Chng Chong Pohwas charged on 10 January 2014.

Criminal Prosecution Initiated Persons Fined & Jailed

2. Marketmanipulation

Wong Chee KheongBun Lit Chun

Both Wong and Bun werecharged, in furtherance of their

common intention with one NgChong Yeng, for creating amisleading appearance as to theprice of Suremax GroupBerhad (Suremax) shares on

Bursa Malaysia through 153

central depository securitiesaccounts.They were alsocharged in the alternative for

creating a misleadingappearance as to active tradingin Suremax shares through

transactions that did not

involve any change inbeneficial ownership on BursaMalaysia through 9 centraldepository securities accounts.

Wong Chee Kheong and Bun LitChun were charged on 25

October 2005.On 7 January2011, Wong Chee Kheong andBun Lit Chun were convicted bythe Sessions Court on theAlternative Charge.On 12

January 2011, Wong Chee

Kheong was sentenced to 24months imprisonment and a fineof RM3 million (in default 6

months imprisonment). Bun LitChun was sentenced to 3 monthsimprisonment and a fine of RM2

million (in default 6 months

imprisonment).On 18 March2014, the Kuala Lumpur HighCourt affirmed the convictionand dismissed the appeal by both

Wong and Bun.

On 27 March 2014, Buns appealto the High Court againstsentence was allowed in part

where the sentence ofimprisonment was reduced from

3 months to 1 day. The fine ofRM2 million imposed by theSessions Court was affirmed.

On 9 April 2014, the High Court

dismissed Wongs appeal against

sentence and affirmed thesentence of 24 months


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imprisonment and a fine of RM3

million (in default 6 monthsimprisonment) imposed by theSessions Court .

Both Wong and Bun have filednotices of appeal to the Court of

Appeal. The Prosecution hasfiled a cross appeal against thereduced sentence of Bun.

Administrative Actions

Administrative Actions in 2014

No. Nature of

Misconduct

Parties Involved Brief description of

misconduct

Action Taken Date

of

Action

1. Breach of Section 356 of theCapital Markets andServices Act 2007 for

failure to comply with the

SCs Guidelines onCompliance Function ForFund Management

Companies.

Capital DynamicsAsset ManagementSdn Bhd (a Capital

Markets Services

Licence holdercarrying out regulatedactivities of fund

management )

Failure to disclose thedeferred performance feeschargeable annually in the

statements issued to its clients

Directive to disclose toits clients the chargeableperformance fees to date,

in the statement issued to

its clients by 31December 2014

29September

2014

2. Breach of Section 356 of the

Capital Markets andServices Act 2007 forfailure to comply with theSCs Licensing Handbook

and Guidelines onCompliance Function For

Fund ManagementCompanies

Apex Investment

Services Berhad (aCapital MarketsServices Licenceholder carrying out

dealing in securitiesand fund

management)

Allowing unlicensedpersons to deal in securities

by facilitating referral

arrangement for its unit trustconsultants; and

Receiving rebates out ofclients transactions and notdirecting it back to clientsaccounts.

Penalty of RM100,000 15 May

2014

3. Breach of Section 356 of the

Capital Markets andServices Act 2007 forfailure to comply with the

SCs Licensing Handbook

AmInvestment Bank

Berhad (a CapitalMarkets ServicesLicence holder

carrying out dealing in

securities and fundmanagement)

Allowing unlicensed persons

to carry out activities of alicensed person in solicitingfund management clients,

including receiving trading

orders directly from fundmanagement clients.

Penalty of RM100,000 29

January2014

Civil Actions and Regulatory Settlements

o. Offence Defendants Brief facts of the case

1. False trading and marketrigging transaction[s. 84 of the SIA]

Stock market manipulation[s.85 of the SIA]

Kenneth Vun @ Vun Yun Liun

Teng Choo Teik

Simon Ling Siang Hock

Lye Pei Ling

On 22 July 2014, the SC filed a civil suit against the 7defendants. The SC is seeking, among others:

A declaration that the defendants engaged in falsetrading and market rigging transactions in respect of

DVM shares from 14 March 2006 until 21 March 2006;


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Chuah Hock Soon

Choong Lay Ti

Gui Boon Huat

A declaration that the defendants engaged in stock

market manipulation in respect of DVM shares from 14

March 2006 until 21 March 2006;

A declaration that all profits earned by each of thedefendants by reason of their false trading and marketrigging transactions and stock market manipulation of

DVM shares are held on constructive trust for thebenefit of the affected investors;

An order that all assets and properties of each of thedefendants be traced and/or followed, and thereafter

paid over to the Commission for the purpose ofcompensating any materially affected investors ofDVM shares;

General and/or aggravated and/or exemplary damages

against all the defendants;

Special damages;

Civil penalty of RM1,000,000 against each of thedefendants for breach of section 84 and 85 of the SIA;

Interest;

An injunction to restrain each of the defendants fromtrading in any counter on Bursa Malaysia for a period

of 5 years;

An order that each of the defendants be barred frombeing a director of any public listed company for aperiod of 5 years;

Costs.

Regulatory Settlement

Regulatory settlement with Wong Thean Soon

On 26 September 2014, Wong Thean Soon (TS Wong), entered into a settlement with the Securities Commission Malaysia (SC) inthe sum of RM7,000,000 when he agreed without admission or denial of liability, to settle a claim that the SC was proposing to instituteagainst him and 13 others for the manipulation of MyEG Services Berhad shares between 16 January 2007 and 24 April 2007, contrary

to section 84(1) of the Securities Industry Act 1983. The 13 other individuals involved in the alleged manipulation were:Chia Hang KianChoo Weng Wah

Tan Men Siong

Ng Hong SingChung Siang HienNg Wee KiatTan Chiu Keong

Tan Khei ChuanR. Mahalingam a/l A. Renganathan

Hon Kok SengMah Hoong Meng

Ng Wee LunJayakumar a/l Panneer Selvam

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities

laws.

Regulatory settlement with Chua Siow Leng


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On 8 August 2014, the SC entered into a settlement with Chua Siow Leng in the sum of RM1,099,231.44 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 ofWCT Berhad between 2 January and 5 January 2009, contrary to section 188(2) of the Capital Markets and Services Act 2007 (CMSA).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 Chua was required to disgorge was equivalent to three 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. In accordance with section 201(7) of the CMSA, the amount recovered from Chua will be used first toreimburse the SC for all costs of investigations and proceedings. Any remaining amount if available will be used to compensate thebuyers who bought their WCT Berhad shares before the information became generally available.

Regulatory settlement with Tam Kin Kok

On 8 August 2014, the SC entered into a settlement with Tam Kin Kok in the sum of RM505,095.72 when he agreed without admissionor denial of liability, to settle a claim that the SC was proposing to institute against him for insider trading in the shares of WCT Berhadbetween 30 December 2008 and 2 January 2009, contrary to section 188(2) of the Capital Markets and Services Act 2007 (CMSA). 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 Tam was required to disgorge was equivalent to three times the difference between the price at which the shares weredisposed 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. In accordance with section 201(7) of the CMSA, the amount recovered from Tam will be used first to

reimburse the SC for all costs of investigations and proceedings. Any remaining amount if available will be used to compensate the

buyers who bought their WCT Berhad shares before the information became generally available.

Regulatory settlement with Mohd Irtiza Azmel Bin Mohd Ismail and Mohd Ismail Bin Yahya

On 11 August 2014, the SC entered into a settlement with Mohd Irtiza Azmel bin Mohd Ismail and Mohd Ismail Bin Yahya in the sum

of RM22,000 when they agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute againstthem for insider trading in the shares of Boustead Properties Berhad (Boustead) on 14 May 2008, contrary to section 188(2) of theCapital Markets and Services Act 2007 (CMSA). The settlement was reached following letters of demand sent by the SC pursuant to itscivil enforcement powers under the securities laws, where the sums both of them were required to disgorge was equivalent to three times

the difference between the price at which the shares were acquired and the price at which they would have been likely to have been

acquired at the time of the acquisition, if the information had been generally available. In accordance with the provisions of section201(7) of the CMSA, the amount recovered from them will be used first to reimburse the SC for all costs of investigations andproceedings. Any remaining amount if available will be used to compensate the sellers who sold their Boustead shares before the

information became generally available.

Regulatory Settlement with Vincent Ng Chee Yee

On 20 February 2014, Vincent Ng Chee Yee (Vincent Ng) entered into a settlement with the SC when he agreed without admission ordenial of liability, to settle a civil claim that the SC was proposing to institute against him with respect to the manipulation of DRB-

Hicom Berhad shares on 25 July 2011, contrary to section 176(1)(b) of the Capital Markets and Services Act 2007 (CMSA).Thesettlement of RM200,000 was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under thesecurities laws. The amount recovered from this settlement will be applied in accordance with section 200 of the CMSA.Earlier in

December 2013, OCBC Bank (M) Berhad (OCBC) entered into a settlement with the SC for the sum of RM2,475,000 following a letter

of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. The sum of RM2,475,000 was equivalent tothree times the pecuniary gain of RM825,000 which OCBC had made as a result of the breach.


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KASUS HUKUM PASAR MODAL DI MALAYSIA 2013

No. Nature of Offence Offender(s) Facts of Case Sentence

Criminal Prosecution Initiated Persons Charged

1. Furnishing false statementto Bursa Malaysia

Securities Berhad

Koh Tee JinLee Han Boon

Saipuddin Lim

bin Abdullah

Koh Tee Jin, Saipuddin Lim and Lee Han Boon wereeach charged with five counts of furnishing false

statements relating to the revenue of Axis

Incorporation Berhad (Axis) to Bursa Malaysia.The charges which were preferred under section122B(b)(bb) of the Securities Industry Act 1983(SIA) and section 369(b)(B) of the Capital Markets

and Services Act 2007 (CMSA) were in relation to

false statements contained in Axis four quarterlyreports for the financial year 2007 and the quarterending 31 March 2008

Koh Tee Jin, Lee HanBoon and Saipuddin Lim

were charged on 21

March 2013.

2. Abetting the furnishing ofa false statement to Bursa

Malaysia SecuritiesBerhad

Lee Koon Huat Lee Koon Huat was charged with four counts ofabetting Axis Incorporation Berhad (Axis) in

furnishing false statements relating to the revenue ofAxis to Bursa Malaysia. The charges which werepreferred under section 122C(c) read together withsection 122B(a)(bb) of the Securities Industry Act

1983 (SIA) were in relation to false statements

contained in Axis four quarterly reports for thefinancial year 2007.

Lee Koon Huat wascharged on 26 March

2013.

3. Furnishing false statementto Bursa Malaysia

Securities Berhad

Tan HanKook

Ching SiewCheong

Tan Han Kook and Ching Siew Cheong were eachcharged with seven and eight counts respectively of

furnishing false statements relating to the revenue of

Silver Bird Group Berhad to Bursa Malaysia. Thecharges which were preferred under section369(b)(B) of the Capital Markets and Services Act

2007 (CMSA) were in relation to false statementscontained in Silver Bird Group Berhads quarterly

reports for financial years 2010 and 2011.

Tan Han Kook andChing Siew Cheong were

charged on 11 September

2013.

Outcome of Criminal ProsecutionPersons Fined

1. Submission of misleadingstatement to the SC

Mohamed binAbdul Wahab

On 12 March 2003, Mohamed bin Abdul Wahab wascharged under s.47C(5) of the Securities IndustryAct 1983 (SIA) for having abetted Metrowangsa

Asset Management Sdn Bhd (Metrowangsa) in using

RM50 million of Lembaga Tabung Hajis funds topay Mimos Berhad, another client ofMetrowangsa.He was also charged with two counts

of knowingly authorizing the furnishing ofmisleading statements to the SC in Metrowangsas

semi-annual report from 2000 to 2001. The chargeswhich were preferred under s.122B(b)(cc) of the SIA

were in relation to the amount of funds managed byMetrowangsa in 2000 and 2001.

On 1 April 2009, theSessions Court foundMohamed bin Abdul

Wahab guilty of the 1st

charge under s.47C(5) ofthe SIA. He was orderedto pay a fine of

RM200,000, in defaultone year

imprisonment. However,the Sessions Court

acquitted Mohamed binAbdul Wahab of the 2ndand 3rd charges relatingto the furnishing of

misleading statements to

the SC. The Prosecutionfiled an appeal againstthe acquittal to the HighCourt. On 14 February

2013, the High Court

dismissed the appeal bythe Prosecution and

affirmed Mohamedsacquittal of the said two


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charges.On 19 February2013, the Prosecutionfiled an appeal to theCourt of Appeal against

the decision of the HighCourt.

On 13 December 2013,the Court of Appealreversed the decision of

the High Court andfound Mohamed guiltyof the 2nd and 3rd

charges. The Court of

Appeal sentenced him toa fine of RM 500,000 foreach charge, in default ofpayment, one year

imprisonment.

2. Holding out as arepresentative in respect

of a regulated activity,namely trading infutures contracts,

without holding a

Capital Markets ServicesRepresentativesLicence.

Carrying on a businessin a regulated activity,namely trading in

futures contracts,without holding a

Capital Markets ServicesLicence.

Zamani binHamdan

Zamani Hamdan was, at the material time, a directorof Rantau Simfoni Sdn Bhd. He was charged withholding himself out as a representative of a Capital

Markets Services Licence holder to trade in futurescontracts without a licence.

Zamani was also charged in the alternative forcarrying on the business of trading in futurescontracts without a license, through his company,Rantau Simfoni.

Zamani Hamdan wascharged on 28 October2011. On 30 April 2013,

Zamani was convicted bythe Sessions Court on the

alternative charge ofcarrying on the businessof trading in futurescontracts without holding

a Capital Markets

Services Licence throughhis company RantauSimfoni Sdn Bhd. The

Sessions Court sentenced

him to a fine of RM1million. Zamani has filed

an appeal against the

conviction and sentenceon 2 May 2013 while theProsecution filed anappeal against the

sentence on 8 May 2013.

Outcome of Criminal ProsecutionPersons Fined and Jailed

1. Engaging in an act whichoperated as a deceit

Ashari Rahmat Ashari, an operating officer of MIH, was charged in2000 for engaging in an act which operated as adeceit on UPA Corporation Berhads IPO exerciseby switching successful applications with those not

put through the balloting process.

Ashari was convictedafter a full trial on 25March 2009 by theSessions Court Kuala

Lumpur.He wassentenced to 3 yearsimprisonment and a fineof RM1 million (in

default 1 year

imprisonment).On 4January 2012, the HighCourt confirmed his

conviction and the finesentence of RM1 millionwas ordered to be

paid.On 5 March 2012,the Court of Appeal

confirmed the said

conviction and sentence.


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2. Misleading statements inconnection with thepurchase of securities

Wahid AliKassim Ali

Wahid Ali, the director of Aiwanna Manage AssetsSdn Bhd (Aiwanna) was charged on 19 October2005 with three counts for omitting to state amaterial fact which was misleading, pertaining to the

investment of Aiwannas client, Eastern PacificIndustrial Corporation Bhd (EPIC), in the purchase

of bonds.The statements were contained in the updates ofEPICs RM5 million investment when in fact themoneys had already been dissipated.

On 30 June 2009, WahidAli was found guilty ofall three charges underthe Section 87A(c) of the

Securities Industry Act1983. To each charge, he

was sentenced to one-year imprisonment (to beserved concurrently) and

a fine of RM1 million (indefault of the total RM3million fine, one-year

imprisonment). On 14

January 2013, the HighCourt dismissed WahidAlis appeal againstconviction and sentence

and upheld the decisionof the Sessions Court.

Pending his appeal to theCourt of Appeal against

the said High Courtdecision, Wahid Ali was

ordered to execute abond of RM1 million to

stay the execution of thesentences.

Outcome of Criminal ProsecutionPersons Acquitted

1. Submission of misleadinginformation to the SC

Mohamed binAbdul Wahab

On 12 March 2003, Mohamed bin Abdul Wahab wascharged with three charges under the SIA. The firstcharge was preferred under s.47C(5) of the SIA

where he was charged with having abettedMetrowangsa in using RM50 million of LembagaTabung Hajis moneys to pay another of its

clients.He was also charged with two charges under

s.122B(b)(cc) of the SIA for knowingly authorizingthe furnishing of misleading statements to the SC inMetrowangsas semi-annual report from 2000 to2001.The misleading statements therein were in

relation to the amount of funds managed by

Metrowangsa in 2000 and 2001.

On 1 April 2009, theSessions Court foundMohamed bin Abdul

Wahab guilty of the 1stcharge under s.47C(5) ofthe SIA. He was ordered

to pay a fine of

RM200,000, in defaultone yearimprisonment.However,Mohamed bin Abdul

Wahab was found not

guilty and was acquittedof the 2nd and 3rdcharges relating to

furnishing of misleadingstatements to the SC andwas acquitted and

discharged by theSessions Court on the

same day. TheProsecution filed anappeal against the

acquittal to the High

Court.On 14 February2013, the High Courtdismissed the appeal bythe Prosecution and

affirmed Mohamed bin

Abdul Wahabs acquittalof the said twocharges.The Prosecution

had on 19 February 2013filed an appeal to the


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Court of Appeal againstthe decision of the HighCourt.

2. Illegal fund management

activities

Anuar Abdul

Aziz

Anuar was charged with carrying out the functions of

a fund managers representative for Corporate EightAsset Management Sdn Bhd (now known as Oasis

Asset Management Sdn Bhd) without a licence.

Anuar was charged on 2

September 2003. He wasacquitted by the Sessions

Court on 20 May 2010.On 12 October 2012, theHigh Court dismissed theappeal by the

Prosecution. The

Prosecution filed anappeal to the Court ofAppeal against the

acquittal of Anuar at theend of Prosecution

stage.On 15 August2013, the Court of

Appeal dismissedProsecutions appeal andupheld the decision by

the Sessions Court andHigh Court.

Outcome of Criminal Prosecution

1. Market manipulation Low Thiam

Hock

Low, executive chairman of Repco Holdings Berhad

(Repco), was charged for manipulating the price ofRepco shares on the KLSE on 3 December 1997.

Low was charged on 18

September 1999.At theend of the prosecution

case, Low was acquittedand discharged by the

Sessions Court Kuala

Lumpur on 14 November2006.On 15 October

2010, the High Court

dismissed theProsecutions appealagainst the acquittal.On28 February 2013, the

Court of Appealunanimously allowed the

Prosecutions appeal andset aside the

Respondents acquittal.The Respondent wasordered to enter hisdefence to the said

charge under section84(1).The case has beenremitted to the SessionsCourt for retrial.


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Civil Actions and Regulatory Settlements

Civil Actions

No. Offence Defendants Brief facts of the case

1. False trading and market rigging

transaction[s. 84 of the SIA]

Stock market manipulation[s.85 of the SIA]

Kenneth Vun @ Vun Yun Liun

Teng Choo Teik

Simon Ling Siang Hock

Lye Pei Ling

Chuah Hock Soon

Choong Lay Ti

Gui Boon Huat

On 22 July 2014, the SC filed a civil suitagainst the 7 defendants. The SC is seeking,

among others:

A declaration that the defendants engaged infalse trading and market rigging transactionsin respect of DVM shares from 14 March2006 until 21 March 2006;

A declaration that the defendants engaged in

stock market manipulation in respect ofDVM shares from 14 March 2006 until 21March 2006;

A declaration that all profits earned by each

of the defendants by reason of their falsetrading and market rigging transactions andstock market manipulation of DVM shares

are held on constructive trust for the benefitof the affected investors;

An order that all assets and properties ofeach of the defendants be traced and/or

followed, and thereafter paid over to the

Commission for the purpose ofcompensating any materially affectedinvestors of DVM shares;

General and/or aggravated and/or exemplarydamages against all the defendants;

Special damages;

Civil penalty of RM1,000,000 against each

of the defendants for breach of section 84and 85 of the SIA;

Interest;

An injunction to restrain each of thedefendants from trading in any counter onBursa Malaysia for a period of 5 years;

An order that each of the defendants bebarred from being a director of any public

listed company for a period of 5 years;

Costs.

Regulatory Settlements

Regulatory settlement with Wong Thean Soon

On 26 September 2014, Wong Thean Soon (TS Wong), entered into a settlement with the Securities Commission Malaysia (SC)in the sum of RM7,000,000 when he agreed without admission or denial of liability, to settle a claim that the SC was proposing toinstitute against him and 13 others for the manipulation of MyEG Services Berhad shares between 16 January 2007 and 24 April 2007,

contrary to section 84(1) of the Securities Industry Act 1983. The 13 other individuals involved in the alleged manipulation were:Chia Hang Kian


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Choo Weng Wah

Tan Men SiongNg Hong SingChung Siang Hien

Ng Wee Kiat

Tan Chiu Keong

Tan Khei ChuanR. Mahalingam a/l A. RenganathanHon Kok Seng

Mah Hoong MengNg Wee Lun

Jayakumar a/l Panneer Selvam

The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities

laws.

Regulatory settlement with Chua Siow Leng

On 8 August 2014, the SC entered into a settlement with Chua Siow Leng in the sum of RM1,099,231.44 when he agreed withoutadmission or denial of liability, to settle a claim that the SC was proposing to institute against him for insider trading in the shares ofWCT Berhad between 2 January and 5 January 2009, contrary to section 188(2) of the Capital Markets and Services Act 2007

(CMSA). 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 Chua was required to disgorge was equivalent to three times the difference between the price at whichthe 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 theinformation had been generally available. In accordance with section 201(7) of the CMSA, the amount recovered from Chua will beused first to reimburse the SC for all costs of investigations and proceedings. Any remaining amount if available will be used to

compensate the buyers who bought their WCT Berhad shares before the information became generally available.

Regulatory settlement with Tam Kin Kok

On 8 August 2014, the SC entered into a settlement with Tam Kin Kok in the sum of RM505,095.72 when he agreed withoutadmission or denial of liability, to settle a claim that the SC was proposing to institute against him for insider trading in the shares of

WCT Berhad between 30 December 2008 and 2 January 2009, contrary to section 188(2) of the Capital Markets and Services Act

2007 (CMSA). The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers underthe securities laws, where the sum Tam was required to disgorge was equivalent to three times the difference between the price atwhich 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. In accordance with section 201(7) of the CMSA, the amount recovered from Tam willbe used first to reimburse the SC for all costs of investigations and proceedings. Any remaining amount if available will be used tocompensate the buyers who bought their WCT Berhad shares before the information became generally available.

Regulatory settlement with Mohd Irtiza Azmel Bin Mohd Ismail and Mohd Ismail Bin Yahya

On 11 August 2014, the SC entered into a settlement with Mohd Irtiza Azmel bin Mohd Ismail and Mohd Ismail Bin Yahya in the sumof RM22,000 when they agreed without admission or denial of liability, to settle a claim that the SC was proposing to institute againstthem for insider trading in the shares of Boustead Properties Berhad (Boustead) on 14 May 2008, contrary to section 188(2) of theCapital Markets and Services Act 2007 (CMSA). The settlement was reached following letters of demand sent by the SC pursuant to

its civil enforcement powers under the securities laws, where the sums both of them were required to disgorge was equivalent to threetimes the difference between the price at which the shares were acquired and the price at which they would have been likely to havebeen acquired at the time of the acquisition, if the information had been generally available. In accordance with the provisions ofsection 201(7) of the CMSA, the amount recovered from them will be used first to reimburse the SC for all costs of investigations and

proceedings. Any remaining amount if available will be used to compensate the sellers who sold their Boustead shares before theinformation became generally available.

Regulatory Settlement with Vincent Ng Chee Yee

On 20 February 2014, Vincent Ng Chee Yee (Vincent Ng) entered into a settlement with the SC when he agreed without admission or

denial of liability, to settle a civil claim that the SC was proposing to institute against him with respect to the manipulation of DRB-Hicom Berhad shares on 25 July 2011, contrary to section 176(1)(b) of the Capital Markets and Services Act 2007 (CMSA).Thesettlement of RM200,000 was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the

securities laws. The amount recovered from this settlement will be applied in accordance with section 200 of the CMSA.Earlier in

December 2013, OCBC Bank (M) Berhad (OCBC) entered into a settlement with the SC for the sum of RM2,475,000 following aletter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws. The sum of RM2,475,000 was


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equivalent to three times the pecuniary gain of RM825,000 which OCBC had made as a result of the breach.

Administrative Actions

Administrative Actions in 2013

No. Nature of

Misconduct

Parties

Involved

Brief description of

misconduct

Action Taken Date

of

Action

1. Breach of Section 215(3) of the CapitalMarkets and Services

Act 2007 (CMSA)

Ranhill Energyand ResourcesBerhad

Failure to forthwith inform the SC,when party involved knew or becameaware that any statement or

information which has been

submitted to the SC might be false,misleading or materially incomplete,before the proposal in the application

has been fully effected, carried out orimplemented.

Penalty of RM200,000 7November

2013

2. Breach of Section 215(3) of the CapitalMarkets and ServicesAct 2007 (CMSA)

Tan Sri HamdanMohamad(Promoter,Executive

Director/ Presidentand Chief

Executive ofRanhill Energy

and ResourcesBerhad)

Failure to forthwith inform the SC,when party involved knew or becameaware that any statement orinformation which has been

submitted to the SC might be false,misleading or materially incomplete,

before the proposal in the applicationhas been fully effected, carried out or

implemented.

ReprimandPenalty of RM300,000

7November

2013

3. Breach of Section273(1)(d) and (e) ofthe Capital Marketsand Services Act

2007 (CMSA)

Universal Trustee(Malaysia) Berhad

Failure to inform the SC of theissuers failure to remedy breaches

of the trust deed; and

Failure to call for a meeting ofbondholders and placing before

such meeting, proposals for theprotection of the interest of thebondholders as appropriate and

obtain their directions in relation to

the same.

Reprimand 15 July2013

4. Breach of Section33B of the Securities

Commission Act1993 and Paragraph

6(4) of the MalaysianCode on Take-Oversand Mergers 1998.

(

a)

Superior Pavillion

Sdn Bhd;

(

b

)

SM Nasarudin SM

Nasimuddin;

(

c

)

SM Faliq SM

Nasimuddin; and

(d)

Dato Ahmad binIbrahim(collectivelyreferred as

Failure of the Concert Parties to carryout a mandatory offer for the

remaining shares in Kumpulan JetsonBerhad

(

a)

Reprimand; and

(

b

)

Penalty of

RM500,000

20 May2013


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Concert Parties)

5. Breach of Section 355

of the Capital

Markets and ServicesAct 2007 for failureto comply with:

(a) the SecuritiesCommissions:

Guidelines onPrevention of

Money Launde

& TerrorismFinancing forCapital Market

Intermediaries(AML

Guidelines);

LicensingHandbook;

ComplianceGuidelines forFutures Broker

and

(b) the Rules of theBursa MalaysiaDerivatives Berh

Okachi (Malaysia)

Sdn Bhd (a Capital

Markets ServicesLicence holdercarrying out

dealing inderivatives)

(a) Breach of provisions of theAML Guidelines:

Poor adoption of Know-Your-Client requirements

Failure to develop an

effective system to detectsuspicious transactions; and

Failure to conduct adequatestaff training and perform

independent audit on Anti-Money Laundering/Counter

Terrorism Financingcompliance programmes.

(b) Absence of any evaluative and

supervisory review on thecompliance of the AMLGuidelines.

(a

)

Penalty ofRM200,000

(b)

Directive to attendat least two (2)Anti-Money

Laundering and

Anti-TerrorismFinancing Act 2001training

programmes withinthe next twelve (12)months for Okachi

Sdn Bhds Board of

Directors and

ComplianceOfficer.

10 May

2013

6. Breach of Section 356of the CapitalMarkets and Services

Act 2007 for failureto comply with theSecuritiesCommissions

Guidelines on:

(a

)

Prevention of MoneLaundering and

Terrorism FinancinCapital Market

Intermediaries; and

(b)

Market Conduct anBusiness Practices fStockbrokers and

Licensed

Representatives

TA SecuritiesHoldings Berhad(a Capital Markets

Services Licenceholder carrying outdealing insecurities)

(a) Failure to have and implementan effective system to detect

and report suspicioustransactions

(b) Failure to provide adequateemployee training and toconduct independent audit oncompliance programmes

(c) Failure to have in placeadequate Customer Due

Diligence processes andknow-your-clientrequirements

Penalty of RM150,000 25 April2013

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