Bursa Malaysia Reprimands, Fines And Orders To Strike Off Zackery Bin Aziz For Unlawful And Unethical Conduct

Bursa Malaysia Securities Berhad (Bursa Securities) has publicly reprimanded, imposed a fine of RM38,000 and ordered to strike off Zackery Bin Aziz (Zackery) from the Register as a Dealer’s Representative (DR) for engaging in unlawful and unethical conduct through the abuse of a client’s account, including the misuse of monies.

Zackery, who was at the material time of the breach a Commissioned DR of Kenanga Investment Bank Berhad at its Kuching branch office, contravened and/or triggered the provisions of Rules 404.3(1)(a) & (b), 1302.1(1)(a), (g) & (i)(iii) and 404.4(9)(a) of the Rules of Bursa Securities.

Bursa Securities views misconducts that compromise the integrity or honesty of Registered Persons seriously as Registered Persons, including DRs, are required to uphold the interest of their clients and the investing public. Bursa Securities will not hesitate to take appropriate actions against anyone who engages in such misconducts, including striking off a Registered Person from the Register and/or imposing fines that commensurate with the severity of the breach.

BACKGROUND

The finding of the breach and the imposition of the aforementioned sanctions on Zackery were made pursuant to Rule 1301.2 of the Rules of Bursa Securities upon completion of due process and after taking into consideration all facts and circumstances, including that:-

1. Zackery’s misconduct in handling his client’s account involved, amongst others:-
   1. misuse of sales proceeds arising from the disposal of a client’s shares by using a substantial part of the proceeds to unlawfully undertake purchases in the client’s account and failing to inform the client of the disposal of shares, which showed his intention to conceal the share disposal and the misuse of the sales proceeds; 
      
      
   2. carried out numerous unauthorised transactions including using the aforementioned sales proceeds to unlawfully transact in the client’s account over a period of several months without the client’s instruction, knowledge and/or consent, resulting in losses in the client’s account; and 
      
      
   3. failure to carry out the client’s instruction to sell all the shares in the client’s account and upon the disposal of the shares, to pay the sales proceeds to the client. 
      
      
2. Zackery’s conduct in failing to carry out the client’s instructions, the abusive manner in the handling of the client’s account and the misappropriation of the client’s monies/ sales proceeds, including unauthorised trades undertaken without the client’s knowledge and consent brought into question his integrity and honesty as a Registered Person. These misconducts rendered him unfit to remain in the industry as a Registered Person. 
   
   
3. Notwithstanding that the shortfall of the sales proceeds of the client were subsequently reimbursed by Zackery after a complaint was made by the client, the misuse of the client’s sales proceeds and the abuse of the client’s account were serious breaches as Zackery had compromised his client’s interest. Zackery’s conduct showed that he had blatantly disregarded his obligations under the relevant Rules of Bursa Securities. 
   
   
4. As a DR, Zackery must, amongst others:
   1. carry out his duties efficiently, honestly and fairly; 
      
      
   2. observe professional standards of integrity and fair dealing; and 
      
      
   3. act honestly in the best interest of his client, including not to unlawfully transact on the client’s account and misuse the client’s sales proceeds.