Source: https://www.sc.com.my/regulation/enforcement/actions/administrative-actions/administrative-actions-in-2019
Timestamp: 2020-07-10 10:00:35
Document Index: 128516778

Matched Legal Cases: ['art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 2', 'art 3']

Administrative Actions in 2019 - Administrative Actions | Securities Commission Malaysia
Administrative Actions in 2019
1. Breach of Section 356(1)(a) read together with Section 61(4) of the Capital Markets and Services Act 2007 (“CMSA”) for failure to comply with the conditions of Capital Markets Services Representative’s Licence (“CMSRL”) which require a CMSRL holder to remain fit and proper at all times, as provided under Paragraph 7.03(1) of SC’s Licensing Handbook.
Lau Min Thung
(“Lau”)
Lau had entered numerous large buy orders in the following counters (“relevant counters”) which were designed or intended not to be matched or traded, causing the bid size in the order book to be inflated substantially, and as a result, created a false or misleading appearance of active trading in respect of the shares in the relevant counters:
MACPIE Berhad, formerly known as Sterling Progress Berhad
MMAG Holdings Berhad, formerly known as Ingenuity Consolidated Berhad
Minetech Resources Berhad; and
OCR Group Berhad, formerly known as Takaso Resources Berhad Reprimand 9 December 2019
Breach of Section 354(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with Section 25(4) Securities Industry (Central Depositories) Act 1991 (“SICDA”)
Tan Sri Dato’ Chua Ma Yu (“Tan Sri Chua”)
Tan Sri Chua was found to be the beneficial owner of the deposited securities, namely MBSB shares in the CDS account of Hawang Kim Lian and Lean Siew See.
Penalty of RM400,000
Breach of Section 354(1)(a) of the CMSA read together with section 29A of SICDA
Hawang Kim Lian (“Hawang”) and
Lean Siew See (“Lean)
Hawang and Lean were found to have engaged in trading activities in relation to deposited securities, namely MBSB rights and shares in CDS accounts registered under their respective names while evidence showed that Tan Sri Chua was the beneficial owner.
Against Hawang and Lean
Penalty of RM54,000
Breach of section 356(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with Paragraphs 11.1 and 11.4 of the Guidelines on Prevention of Money Laundering & Terrorism Financing for Capital Market Intermediaries as at 15 January 2014 (“2014 AML Guidelines”) (“Breach 1”)
Breach of section 356(1)(a) of the CMSA read together with Paragraph 7.1.1 of the Guidelines on Prevention of Money Laundering & Terrorism Financing for Capital Market Intermediaries as at 1 August 2012 (“2012 AML Guidelines”) and Paragraph 6.0(a) of the Guidelines on Market Conduct and Business Practices for Stockbrokers and Licensed Representatives (“Breach 2”) PM Securities Sdn Bhd (“PM”), a holder of a Capital Market Services Licence ("CMSL") for dealing in securities
Failure to clarify the economic background and purpose of any transaction or business relationship in relation to multiple cash deposits amounting to RM145,000 made by one of PM’s Capital Markets Services Representative’s Licence holder (“CMSRL”) (“Unusual Cash Deposits”); and
Failure to lodge a Suspicious Transaction Report on the Unusual Cash Deposits to the Financial Intelligence Enforcement Department of Bank Negara Malaysia.
Failure to conduct ongoing due diligence and scrutiny of the identities and investment objectives of 5 clients (“5 Clients”) who made applications to increase their trading limits through the same CMSRL; and
Failure to clarify the economic background and purpose for the increase in trading limits for the said 5 Clients.
Reprimand for Breach 1; and
Reprimand for Breach 2
5. Breach of section 356(1)(a) of the CMSA read together with Paragraphs 6.1, 6.2(a), 7.1.1 and 9.1 of the 2012 AML Guidelines Mercury Securities Sdn Bhd, a holder of a CMSL for dealing in securities, advising on corporate finance and investment advice
Failure to obtain satisfactory evidence on the identity of a person who purportedly acted as the authorised representative of 25 clients (“25 Clients”) when there were no discernible relationships between the parties; and
Failure to clarify the purpose of the business relationships between the 25 Clients and the purported authorised representative.
Reprimand 18 December 2019
Breach of Section 72(2)(a)(i) of the CMSA read together with Sections 64(1)(j), 64(1)(h)(v) of the CMSA and relevant paragraphs of the Compliance Guidelines and AML Guidelines VCB Capital Sdn Bhd, a Capital Market Services Licence Holder for the regulated activity of fund management (fund management in relation to portfolio management)
The SC is not satisfied as to the manner in which VCB’s business is conducted pursuant to Section 64(1)(j) of the CMSA;
VCB has conducted itself in such a way as to cast doubt on its competence and soundness of judgment pursuant to Section 64(1)(h)(v) of the CMSA;
VCB has failed to comply with Paragraphs 4.02(h), 4.04(g), (k) and (o) of the Guidelines on Compliance Function for Fund Management Companies (“Compliance Guidelines”); and
VCB has failed to comply with Paragraphs 6.3 and 13.1(c) of the Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries (“AML Guidelines”) read together with Paragraph 4.04(d) of the Compliance Guidelines; and
VCB has failed to comply with Paragraph 7 and Paragraph 8.2.1(a) of the AML Guidelines.
VCB appealed to the SC on 26 June 2019. The appeal was dismissed on 17 September 2019.
Revocation of its CMSL 19 June 2019
7. Breach of Section 356(1)(a) of the Capital Market and Services Act 2007 (CMSA) read together with Paragraph 4.17, Section B, Part 1 of the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework (“LOLA Guidelines”) UOB Asset Management (Malaysia) Berhad (“UOB”), a holder of Capital Market Services License (“CMSL”) for dealing in securities restricted to unit trust and fund management in relation to portfolio management Delay of 1 business day in submission of statistical returns SC imposed a penalty of RM1,000 against UOB 18 September 2019
8. Breach of Section 356(1)(a) of the CMSA read together with Paragraph 4.17, Section B, Part 1 of the LOLA Guidelines Affin Hwang Asset Management Berhad (“Affin Hwang”), a holder of CMSL for dealing in securities restricted to unit trust, fund management in relation to portfolio management and dealing in private retirement scheme
Delay of 8 business days in submission of annual report of its wholesale fund to the investors; and
Delay of 10 business days in submission of annual report of its wholesale fund to the SC.
SC imposed a penalty of RM10,000 against Affin Hwang 18 September 2019
Breach of Section 356(1)(a) of the Capital Market and Services Act 2007 ("CMSA") read together with:
Paragraph 8.2.1(a) of the Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries ("AML Guidelines"); and
Paragraphs 11.3, 11.4, 11.5 and 11.6 of the AML Guidelines.
CIMB Investment Bank Berhad ("CIMB IB"), a holder of Capital Market Services License ("CMSL") for dealing in securities, advising on corporate finance and investment advice
CIMB IB failed to conduct on-going due diligence and scrutiny on AXD System Global Sdn. Bhd. throughout the course of the business relationship; and
CIMB IB failed to detect suspicious transactions and immediately report the same to the FIED via lodgement of a Suspicious Transaction Report.
Directs CIMB IB to allocate not less than RM80,000.00 for staff training or capacity building to ensure operational effectiveness of AML/CFT requirements and that staff are kept abreast of developments on AML/CFT requirements, issues and trends.
CIMB IB is required to report to the SC on the implementation within six (6) months from the date of the action.
Breach of Section 356(1)(a) of the CMSA read together with:
Paragraph 13.1(c) of the AML Guidelines;
Paragraph 8.2.1(a) of the AML Guidelines; and
Paragraphs 11.1, 11.2, 11.3 and 11.4 of the AML Guidelines.
Maybank Investment Bank Berhad ("Maybank IB"), a holder of CMSL for dealing in securities, clearing, dealing in derivatives, advising on corporate finance and investment advice
Maybank IB failed to enhance its Policies and Procedures on Regional Anti-Money Laundering/Counter Financing of Terrorism to incorporate the requirements of SC's AML Guidelines issued on 15 January 2014;
Maybank IB failed to have in place an adequate monitoring system to flag out transactions that raise AML/CFT issues for deposits made via online platform;
Maybank IB failed to conduct on-going due diligence and scrutiny of AXD System Global Sdn. Bhd.;
Maybank IB failed to detect suspicious transactions and immediately report the same to the FIED via lodgement of a Suspicious Transaction Report.
Directs Maybank IB to allocate not less than RM220,000.00 for:-
The enhancement of Maybank IB's monitoring system and control measures to detect red flags from client's deposits, in particular deposits received from third parties; and
Staff training or capacity building to ensure operational effectiveness of AML/CFT requirements and that staff are kept abreast of developments on AML/CFT requirements, issues and trends. The SC expects Maybank IB's key management personnel including the Head of Compliance and all relevant operation officers to attend the aforementioned training.
Maybank IB is required to report to the SC on the implementation of item (a) and (b) within six (6) months from the date of the action.
Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 read together with Section 29A of the Securities Industry (Central Depositories) Act 1991
Daniel Yong Chen-I
Daniel was found to have allowed one Ng Ee Fang who is not an authorised nominee, to dispose a total of 1,000,000 units of Hirotako Holdings Berhad shares using his securities trading account.
Penalty of RM500,000
12. Breach of Section 354(1)(a) of the CMSA read together with Section 369(b)(B) of the CMSA for knowingly authorizing the furnishing of information that is false or misleading to the SC Yeoh Jin Hoe (YJH) As a major shareholder and the Group Managing Director of Kian Joo Can Factory Berhad (KJCF) at the material time, YJH had breached Section 354(1)(a) of the CMSA read together with Section 369(b)(B) of the CMSA for knowingly authorizing the furnishing of information that is false or misleading to the SC through the letters issued by him, following enquiries conducted on potential breach of mandatory offer obligation in KJCF by him and his parties acting in concert
Penalty of RM364,000.00.
Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”)read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 1”)
Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 2”)
Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 3”)
Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 4”)
Dato’ Haji Ramly Bin Haji Zahari, Former Independent Non-Executive Director of Xingquan International Sports Holdings Limited (“Xingquan”)
Recording the loss from the sale of inventory amounting to RMB415.7 million by its wholly owned subsidiary that is false or misleading in any material particular in Xingquan's books, namely in Xingquan’s Quarterly Report on Consolidated Results for the Fourth Quarter Ended 30 June 2016 (“4Q 2016”) and Audited Financial Statement for the Financial Year Ended 30 June 2016 (“AFS 2016”)..
Knowingly causing the furnishing of an agreement between Xingquan's wholly owned subsidiary and a third party that is false to Bursa Malaysia.
Recording cash and bank balances in 8 bank accounts collectively belonging to Xingquan that are false or misleading in any material particular in Xingquan's books, namely in Xingquan's 4Q 2016 and AFS 2016.
Knowingly causing the furnishing of Xingquan's Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were Xingquan’s Quarterly Report on Consolidated Results for the Second Quarter Ended 31 December 2015 (“2Q 2016”) until Quarterly Report on Consolidated Results for the Second Quarter Ended 31 December 2016 (“2Q 2017”) and AFS 2016.
Reprimand for each breach; and
Penalty of RM448,000 which consists of the following:-
Penalty of RM224,000 for Breaches 1 and 3; and
Penalty of RM224,000 for Breaches 2 and 4.
Breach of section 354(1)(a) of the CMSA read together with sections 368(1)(a) and 367(1) of the CMSA (“Breach 1”)
Teo Cern Yong, Former Chief Financial Officer of Xingquan
Recording the loss from the sale of inventory amounting to RMB415.7 million by its wholly owned subsidiary that is false or misleading in any material particular in Xingquan's books, namely in Xingquan's 4Q 2016 and AFS 2016.
Knowingly causing the furnishing of Xingquan's Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were Xingquan's 2Q 2016 until 2Q 2017 and AFS 2016.
Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 ("CMSA") read together with section 7(1) of the CMSA and order 3 of the Capital Market and Services (Prescription of Securities and Islamic Securities) (Investment Note and Islamic Investment Note) Order 2016 ("CMSA Order")
LendingStar Malaysia Sdn Bhd
LendingStar had operated a recognized market (P2P – peer to peer financing platform) via the website https://lendingstar.com without the SC's authorization under Section 34 of the CMSA.
Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 ("CMSA") read together with section 7(1) of the CMSA, order 3 of the Capital Market and Services (Prescription of Securities and Islamic Securities) (Investment Note and Islamic Investment Note) Order 2016 ("CMSA Order") and section 367(1) of the CMSA
Viacheslav Artomonov
(Director of LendingStar)
Siti Nurbaya Binti Mansor
(Former Director of LendingStar)
18. Breach of Section 356(1)(a) of the Capital Market and Services Act 2007 (CMSA) read together with Paragraph 4.17 and Paragraph 4.18(e), Section B, Part 1 of the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework (“LOLA Guidelines”) TA Investment Management Berhad (“TA Investment”), a holder of Capital Market Services License (“CMSL”) for dealing in securities restricted to unit trust, fund management in relation to portfolio management and dealing in private retirement scheme Delay of 1 business day in submission of statistical returns SC imposed a penalty of RM1,000 against TA Investment 18 July 2019
19. Breach of Section 356(1)(a) of the CMSA read together with Paragraph 4.17, Section B, Part 1 of the LOLA Guidelines Golden Touch Asset Management Sdn Bhd (“Golden Touch”), a holder of CMSL for fund management Delay of 1 business day in submission of statistical returns SC imposed a penalty of RM1,000 against Golden Touch 11 April 2019
Breach of Section 356(1)(a) of the CMSA read together with Paragraph 4.17, Section B, Part 1 of the LOLA Guidelines
MTC Asset Management (M) Sdn Bhd (“MTC”), a holder of CMSL for fund management Delay of 1 business day submission of statistical returns SC imposed a penalty of RM4,000 against MTC 7 March 2019
(i) Breach of Sections 65(1)(g)(iv)(v) and (l) of the Capital Markets and Services Act 2007 ("CMSA"):
For engaging in business practices appearing to the SC to be improper or reflect discredit on your method of conducting business;
For conducting himself in such a way as to cast doubt on his competence and soundness of judgement; and
the SC has reason to believe that the holder of the Capital Markets Services Representative's Licence ("CMSRL") will not carry on the regulated activity for which he is licensed for efficiently, honestly or fairly
(ii) Breach of Section 356(1)(a) of the CMSA read together with:
Section 61(4) of the CMSA for failure to comply with the condition of his CMSRL, which requires him to remain fit and proper at all times as provided under Paragraph 7.03(1) of the SC's Licensing Handbook
Chu Li Choon ("CLC")
a holder of a CMSRL carrying out the regulated activity of dealing in securities
Executed unauthorised share trades in five counters and subscribed to an investment in structured product without her client's authorisation
Deceived the client on an investment in a structured product, when in fact she had invested in another product for him
Produced and presented fabricated investment advices / statements to the client in order to conceal the unauthorised transactions executed as well as losses incurred by the client
Registered and managed the online trading account on behalf of the client including keeping the password to the account
Revocation of CLC's CMSRL for dealing in securities under Section 72(2)(b)(i) of the CMSA
Penalty of RM100,000
On 5 March 2019, CLC appealed to the SC against the sanctions imposed.
On 25 April 2019, the SC decided to affirm the sanctions. Revocation of CLC's CMSRL shall take effect from 10 May 2019.
Azuzay bin Zamani ("Azuzay")
Allowing one Mohd Nor bin Abdul Wahid who is not an authorised nominee, to dispose a total of 660,000 units of Three-A Resources Berhad shares using Azuzay's securities trading account.
Penalty of RM500,000 20 March 2019
Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with section 369(b)(B) of the CMSA
China Stationery Limited (“CSL”)
Knowingly causing the furnishing of CSL’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were:
CSL’s Quarterly Report on Consolidated Results for the First Quarter Ended 31 March 2015 (“1Q 2015”) until Quarterly Report on Consolidated Results for the Second Quarter Ended 30 June 2017 (“2Q 2017”); and
CSL’s Audited Financial Statement for the Financial Year Ended 31 December 2015 (“AFS 2015”) and Audited Financial Statement for the Financial Year Ended 31 December 2016 (“AFS 2016”)
Reprimand 15 February 2019
Breach of section 354(1)(a) of the CMSA read together with section 317A (1) of the CMSA (“Breach 1”)
Breach of section 354(1)(a) of the CMSA read together with section 137(1) of the Securities Commission Malaysia Act 1993 (“SCMA”) for failure to comply with section 152(1) Notices of the SCMA (“Breach 3”) Chan Fung @ Kwan Wing Yin
Causing CSL's wholly owned subsidiaries to be a guarantor for Chan Fung's personal loans which were done with the intention of causing wrongful loss to the related corporation of CSL.
Knowingly causing the furnishing of CSL's Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were:
CSL's 1Q 2015 until 2Q 2017; and
CSL's AFS 2015 and AFS 2016
Failure to provide any response to the section 152 (1) Notices which were sent by the SC to Chan Fung.
The SC has issued a public statement to the effect that, in the SC's opinion, the retention of office by Chan Fung as a Director of CSL is prejudicial to the public interest
Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA (“Breach 1”)
Breach of section 354(1)(a) of the CMSA read together with section 137(1) of the SCMA for failure to comply with section 152(1) Notices of the SCMA (“Breach 2”)
Angus Kwan Chun Jut
Failure to provide any response to the section 152(1) Notices which were sent by the SC to Angus Kwan.
Reprimand for each breach
Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA
Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 (“CMSA”) read together with section 368(1)(a) of the CMSA (“Breach 1”)
Breach of section 354(1)(a) of the CMSA read together with section 369(b)(B) of the CMSA (“Breach 2”)
Breach of section 354(1)(a) of the CMSA read together with section 368(1)(a) of the CMSA (“Breach 3”)
Breach of section 354(1)(a) of the CMSA read together with section 369(b)(B) of the CMSA (“Breach 4”)
Recording the loss from the sale of inventory amounting to RMB415.7 million by its wholly owned subsidiary that is false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s Quarterly Report on Consolidated Results for the Fourth Quarter Ended 30 June 2016 (“4Q 2016”) and Audited Financial Statement for the Financial Year Ended 30 June 2016 (“AFS 2016”).
Knowingly causing the furnishing of an agreement between Xingquan’s wholly owned subsidiary and a third party that is false to Bursa Malaysia.
Recording cash and bank balances in 8 bank accounts collectively belonging to Xingquan that are false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s 4Q 2016 and AFS 2016.
Knowingly causing the furnishing of Xingquan’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were Xingquan’s Quarterly Report on Consolidated Results for the Second Quarter Ended 31 December 2015 (“2Q 2016”) until Quarterly Report on Consolidated Results for the Second Quarter Ended 31 December 2016 (“2Q 2017”) and AFS 2016.
Breach of section 354(1)(a) of the CMSA read together with section 137(1) of the Securities Commission Malaysia Act 1993 (“SCMA”) for failure to comply with section 152(1) Notices of the SCMA (“Breach 5”)
Dato Wu Qingquan
Failure to provide any response to the Section 152 (1) Notices which were sent by the SC to Dato' Wu Qingquan.
The SC has issued a public statement to the effect that, in the SC's opinion, the retention of office by Dato' Wu Qingquan as a Director of Xingquan is prejudicial to the public interest
Breach of section 354(1)(a) of the CMSA read together with section 137(1) of the SCMA for failure to comply with section 152(1) Notices of the SCMA (“Breach 5”)
Wu Lianfa
Failure to provide any response to the Section 152(1) Notices which were sent by the SC to Wu Lianfa.
The SC has issued a public statement to the effect that, in the SC's opinion, the retention of office by Wu Lianfa as a Director of Xingquan is prejudicial to the public interest
Ng Sio Peng
Recording the loss from the sale of inventory amounting to RMB415.7 million by its wholly owned subsidiary that is false or misleading in any material particular in Xingquan’s books, namely in Xingquan’s 4Q 2016 and AFS 2016.
Knowingly causing the furnishing of Xingquan’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were Xingquan’s 2Q 2016 until Quarterly Report on Consolidated Results for the First Quarter Ended 30 September 2016 (“1Q 2017”) and AFS 2016.
Zhou Liyi
Maxwell International Holdings Berhad (“Maxwell”)
Recording the payment of RMB45.60 million by Maxwell’s wholly owned subsidiary that is false or misleading in any material particular in Maxwell’s books, namely Maxwell’s Quarterly Report on Consolidated Results for the Third Quarter Ended 30 September 2015 (“3Q 2015”), Quarterly Report on Consolidated Results for the Fourth Quarter Ended 31 December 2015 (“4Q 2015”) and Audited Financial Statement for the financial year ended 31 December 2015 (“AFS 2015”).
Knowingly causing the furnishing of Maxwell’s Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were:
Maxwell’s Quarterly Report on Consolidated Results for the First Quarter Ended 31 March 2014 (“1Q 2014”) until Quarterly Report on Consolidated Results for the Fourth Quarter Ended 31 December 2016 (“4Q 2016”); and
Maxwell’s Audited Financial Statement for the financial year ended 31 December 2014 (“AFS 2014”) until Audited Financial Statement for the financial year ended 31 December 2016 (“AFS 2016”) Reprimand for each breach 18 February 2019
Breach of section 354(1)(a) of the CMSA read together with section 134(5)(a) of the Securities Commission Malaysia Act 1993 (“SCMA”) for failure to appear before an Investigating Officer of the Securities Commission Malaysia pursuant to section 134(1)(b) of the SCMA (“Breach 3”) Li Kwai Chun
Recording the payment of RMB45.60 million by Maxwell's wholly owned subsidiary that is false or misleading in any material particular in Maxwell's books, namely Maxwell's 3Q 2015, 4Q 2015 and AFS 2015.
Knowingly causing the furnishing of Maxwell's Financial Statements that is false or misleading to Bursa Malaysia. The Financial Statements concerned were:
Maxwell's 1Q 2014 until 4Q 2016; and
Maxwell's AFS 2014 until AFS 2016.
Failure to appear before an Investigating Officer of the SC pursuant to Section 134(1)(b) of the SCMA.
The SC has issued a public statement to the effect that, in the SC's opinion, the retention of office by Li Kwai Chun as a Director of Maxwell is prejudicial to the public interest
34. Breach of section 354(1)(a) of the CMSA read together with sections 369(b)(B) and 367(1) of the CMSA Xie Zhenan
Maxwell’s 1Q 2014 until Quarterly Report on Consolidated Results for the First Quarter Ended 31 March 2015 (“1Q 2015”); and
Maxwell’s AFS 2014
Su DeMou
Recording the payment of RMB45.60 million by Maxwell’s wholly owned subsidiary that is false or misleading in any material particular in Maxwell’s books, namely Maxwell’s AFS 2015.
Maxwell’s Quarterly Report on Consolidated Results for the First Quarter Ended 31 March 2016 (“1Q 2016”) until 4Q 2016; and
Maxwell’s Audited Financial Statement for the financial year ended 31 December 2015 (“AFS 2015”) and AFS 2016
Reprimand for each breach.
Tan Swee Song
Recording the payment of RMB45.60 million by Maxwell's wholly owned subsidiary that is false or misleading in any particular in Maxwell's books, namely Maxwell's 3Q 2015, 4Q 2015 and AFS 2015.
Breach of section 354(1)(a) of the Capital Markets and Services Act 2007 ("CMSA") read together with section 276(3)(b) of the CMSA ("Breach 1")
Breach of section 354(1)(a) of the CMSA read together with section 276(3)(b) of the CMSA ("Breach 2")
Breach of section 354(1)(a) of the CMSA read together with section 276(1) of the CMSA ("Breach 3")
Breach of section 354(1)(a) of the CMSA read together with section 276(1) of the CMSA ("Breach 4")
Failure to immediately report to the SC on irregularities that may have a material effect on the ability of Bandar Malaysia Sdn. Bhd. ("BMSB") to repay any amount under the Sukuk Murabahah Programme issued in 2014 as set out in the Independent Auditors' Report ("IAR") on BMSB's Audited Financial Statements for the financial year ended 31 March 2015 ("AFS 2015") and IAR on 1MDB Real Estate Sdn. Bhd.'s ("1MDB RE") AFS 2015.
Failure to immediately report to the SC on irregularities that may have a material effect on the ability of BMSB to repay any amount under the Sukuk Murabahah Programme issued in 2014 as set out in the IAR on BMSB's Audited Financial Statements for the financial year ended 31 March 2016 ("AFS 2016") and IAR on 1MDB RE's AFS 2016.
Failure to send a copy of BMSB's AFS 2015 to MTrustee Bhd within seven days after furnishing BMSB with the said financial statements.
Failure to send a copy of BMSB's AFS 2016 to MTrustee Bhd within seven days after furnishing BMSB with the said financial statements.
Reprimand and Penalty of RM1,000,000 for Breach 1;
Reprimand and Penalty of RM1,000,000 for Breach 2;
Reprimand and Penalty of RM100,000 for Breach 3; and
Reprimand and Penalty of RM100,000 for Breach 4.
[Update: On 27 February 2019, Deloitte filed a review application to the SC against the sanctions imposed. On 19 August 2019, the SC decided to affirm the sanctions.]
38. Breach of Section 354(1)(b)(ii) of the Capital Market and Services Act 2007 (CMSA) read together with Paragraph 4.05 and Paragraph 4.06, Section B, Part 2 of the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework ("LOLA Guidelines") Standard Chartered Bank Malaysia Berhad ("Standard Chartered") Delay of 21 business days in submission of monthly post-issuance report SC imposed a penalty of RM21,000 against Standard Chartered 25 January 2019
39. Breach of Section 356(1)(a) of the CMSA read together with Paragraph 4.07, Section B, Part 3 of the LOLA Guidelines RHB Investment Bank Berhad ("RHB IB"), a holder of Capital Market Services License for dealing in securities, clearing, dealing in derivatives, and advising on corporate finance. Delay of 109 business days in submission of post-issuance notice SC imposed a penalty of RM50,000 against RHB IB
MTC Asset Management (M) Sdn Bhd ("MTC"), a holder of Capital Market Services Licence for fund management Delay of 61 business days submission of annual report
Penalty of RM8,000; and
Directive for MTC to draft an immediate action plan on how will MTC ensure compliance with all reporting requirements, and subsequently provide a regular update to the SC on the implementation of such plan