Bursa Malaysia Securities Berhad (Bursa Malaysia Securities) has publicly reprimanded, imposed a fine of RM500,000 and ordered to strike off Yew Ting Hong (YEW) from the Register if he was still a Registered Person of Bursa Malaysia Securities for engaging in unlawful/unethical activities through his acts of misconducts and abuse of clients’ monies/accounts.
YEW, who was at the material time of the breach, a Commissioned Dealer’s Representative of PM Securities Sdn Bhd at its Melaka 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 YEW 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:
(a) YEW’s misconducts/unethical practices in handling the clients’ monies and accounts involved, amongst others:-
i. failure to carry out trades in numerous clients’ accounts as instructed by the clients and the carrying out of unauthorised/personal trades in the clients’ accounts which were concealed with the issuance of fictitious documents to the clients; and
ii. misappropriation/wrongful application of the clients’ monies for purposes not intended by the clients to their detriment.
(b) YEW’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 his integrity and honesty as a Registered Person. These misconducts rendered him unfit to remain in the industry as a Registered Person.
(c) The mishandling and abuse of the clients’ accounts/monies were serious breaches as YEW had compromised the protection of his clients’ interest. There were extensive misconducts by YEW which involved numerous clients’ accounts whose monies were misappropriated by YEW and utilized for purposes not intended by the clients. In addition, YEW had also carried out numerous unauthorized/personal trades in the clients’ accounts and utilized the monies paid by the clients for the intended purchases of their securities towards settlement of his own personal trades/unauthorized purchases undertaken in some of the clients’ accounts without the clients’ knowledge and consent.
(d) As a DR, YEW must, amongst others:
- observe professional standards of integrity and fair dealing;
- perform his duties efficiently, honestly or fairly; and
- act in the best interest of his 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 duties efficiently, honestly or fairly;
- unlawfully transacts on another person’s account;
- commits any act in breach of his 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 personal trades in the account of a client or use a client’s account to trade for a third party.
