Bursa Malaysia Securities Reprimands, Fines And Orders To Strike Off Teh Bee Yean For Unlawful/Unethical Activities/Practices

Bursa Malaysia Securities Berhad (Bursa Malaysia Securities) has publicly reprimanded, imposed a fine of RM500,000 and ordered to strike off Teh Bee Yean (TEH) from the Register if she was still a Registered Person of Bursa Malaysia Securities for engaging in unlawful/unethical activities through her acts of misconducts and abuse of clients’ monies/accounts.

TEH, who was at the material time of the breach, a Commissioned Dealer’s Representative of Public Investment Bank Berhad at its Kuala Lumpur branch office, had contravened and/or triggered the provisions of Rules 1302.1(1)(a)&(g), 1302.1(1)(i)(iii), (iv)&(vi), 404.3(1)(a)&(b) and/or 404.4(9)(a)&(b) of the Pre-Revamped Rules of Bursa Malaysia Securities.

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

BACKGROUND

The finding of the breach and the imposition of the sanctions on TEH were made pursuant to Rule 15.02 of the Rules of Bursa Malaysia Securities upon completion of due process and after taking into consideration all facts and circumstances, including that:

1. TEH’s misconducts/unethical practices in handling the clients’ monies and accounts involved, amongst others:-  
   1. failure to carry out trades in a client’s account as instructed by the client and the carrying out of unauthorised/personal trades in two clients’ accounts which she had concealed with the issuance of fictitious documents to the clients upon wilfully convincing the clients in changing their correspondence addresses for their accounts to her own residential address; and
      
      
   2. misappropriation/wrongful application of the clients’ monies for purposes not intended by the clients to their detriment.
      
      
2. TEH’s fraudulent misconduct in dealing with the clients’ monies and accounts, including falsifying documents and the misapplication or misappropriation of clients’ monies, brought into question her integrity and honesty as a Registered Person. These misconducts rendered her unfit to remain in the industry as a Registered Person.
   
   
3. The mishandling and abuse of the clients’ accounts/monies were serious breaches as TEH had compromised the protection of her clients’ interest. There were extensive misconducts in this regard by TEH which involved significant amount of clients’ monies being misappropriated by her which were utilized for purposes not intended by the clients. In addition, TEH had carried out extensive unauthorised/personal trades in her clients’ accounts to churn brokerage giving rise to significant commission generated/earned by TEH from such unlawful/unethical activities over a period of time.
   
   
4. As a DR, TEH must, amongst others:

• observe professional standards of integrity and fair dealing;
• perform her duties efficiently, honestly or fairly; and
• act in the best interest of her clients including not to unlawfully transact on the clients’ accounts, carry out personal trades in the clients’ accounts and misappropriate the clients’ monies.
  
  

ADDENDUM

Rules 1302.1(1)(a)&(g), 1302.1(1)(i)(iii), (iv)&(vi), 404.3(1)(a)&(b) and/or 404.4(9)(a)&(b) of the Pre-Revamped Rules of Bursa Malaysia Securities (the Rules) provide, amongst others, that:

•  
  • any Participant who, in any circumstances, directly or indirectly, being a DR:
    • -   commits a breach of or violates any of the Rules and fails to perform his/her duties efficiently, honestly or fairly;
    • unlawfully transacts on another person’s account;
    •  commits any act in breach of his/her fiduciary position in respect of the foregoing matters; and
    •  applies any amount paid or securities deposited by a client to any person not entitled thereto or for payment other than the said client’s trading account,

shall be liable and be dealt with in accordance with the provisions of the Rules relating to the same;

• every DR employed or engaged by the Participating Organisation shall at all times observe professional standards of integrity and fair dealing, and act honestly and in the best interest of their clients; and

• no DR shall execute his/her personal trades in the account of a client or use a client’s account to trade for a third party.