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Bursa Malaysia Derivatives Berhad [199301007200 (261937-H)] (Bursa Malaysia Derivatives) has publicly reprimanded, imposed a fine of RM41,700 and suspended/restricted (as the case may be) Annie Tan Lee Phang (Annie) for 6 months as/from being a Local Participant of Bursa Malaysia Derivatives, for misconducts involving, amongst others, abuse/misuse of her privilege as a Local Participant and failure to ensure compliance with the Rules and perform her duties efficiently and fairly as a Local Participant.
Annie, who was at the material time of the breaches a Local Participant of Okachi (Malaysia) Sendirian Berhad (Okachi), had contravened and/or triggered the provisions of Rules 508(c) and 605.1(i) of the Pre-Revamped Rules of Bursa Malaysia Derivatives (applicable for breaches which occurred prior to 15 August 2019) (Breaches).
The finding of the breach and imposition of sanctions on Annie were made pursuant to Rule 502.1 of the Pre-Revamped Rules of Bursa Malaysia Derivatives (Rules) after according due process to Annie and taking into consideration all facts and circumstances, including the severity and extent of the Breaches by Annie.
Bursa Malaysia Derivatives views seriously misconducts that impinge on the professional conduct and integrity of Local Participants and compromise investors protection as such misconducts may adversely affect and damage market integrity and public confidence. Bursa Malaysia Derivatives will not hesitate to take appropriate actions against anyone who engages in such misconducts, including imposition of fines and suspension/restriction/termination of participantship commensurate with the severity of the breach.
BACKGROUND
- Despite knowing that as a Local Participant she was not allowed trade for any other person, Annie, had over a period of several months:-
- traded in Contracts for several third parties/clients of Okachi (Clients). In this regard, she had executed numerous trades in the Clients’ online trading accounts using the Clients’ online trading user-IDs and passwords; and
- been involved in/failed to refrain herself from being involved in an arrangement/agreement with one of the Clients (Client A) whereby she shared the profits made in Client A’s account arising from the trades undertaken by her in Client A’s account (the Arrangement).
- Arising from the Arrangement with Client A, Client A had paid to Annie a portion of the profits made in Client A’s account.
- The sanctions, in particular the fine and 6 months suspension/restriction, were imposed on Annie having considered, amongst others:
- the extent and severity of the Breaches by Annie which involved multiple misconducts including abuse/misuse of privilege as a Local Participant in multiple clients’ accounts, a significant number of trades executed by Annie for the Clients, using the Clients’ online trading user-IDs and passwords and the Arrangement;
- the Clients’ purported knowledge of Annie using/operating their online trading accounts would not absolve Annie from liability for the Breaches as such Breaches/misconducts could result in substantial losses to the Clients and hence undermine investors protection which must be upheld at all times; and
- the profits shared by Client A with Annie.
Hence, Annie had abused/misused her privilege as a Local Participant and/or undertaken trades for the Clients which she was not authorised to do under the Rules.
- The sanctions including the public reprimand were imposed on Annie as deterrence and for investors protection by creating awareness that Local Participants can only trade for themselves and are not allowed to trade for any other person and investors must not allow their accounts to be used by a Local Participant or any other person.
- As a Local Participant, Annie:-
- must not trade in Contracts for any other person other than herself; and
- must at all times perform her duties efficiently, honestly and fairly.
