Page 191 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

eNFoRceMeNT

In 2018, the SC received 17 referrals of possible misconduct of PLC directors and officers causing
violations of securities offences arising mostly from wrongful loss to the PLC as well as securities fraud
active surveillance of market and corporate activities cases (Chart 2).
as well as referrals from local authorities. More than
half of these referrals related to securities fraud and Chart 2
market manipulation offences, which is a departure
from the trend of previous years where the majority Active investigation by nature of offences
of referrals were in relation to insider trading 18%
offences (Chart 1). Corporate 4%
governance AMLATFPUA
5%
As at 31 December 2018, there were 43 active Unlicensed activities
investigations. A significant portion of investigative
resources was deployed to work on cases relating 14%
to market misconduct involving insider trading Securities fraud
and market manipulation. Additionally, one 2%
third of active investigations in 2018 involved Others
corporate governance transgressions relating to the 7%
50% Manipulation
Insider trading
Chart 1

Total referrals by nature of offence

6
5
5
4
4
Number 3 3

2 2
2
1
1

0
Corporate Insider Market Securities Unlicensed
governance trading manipulation fraud activities Others

PART 5 »» STATEMENTS, STATiSTiCS ANd ACTiviTiES | 181

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