Page 194 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

• A licensed intermediary for breaching Infringement notices
provisions in the Guidelines on Prevention of
Money Laundering and Terrorism Financing Apart from the administrative actions under its
for Capital Market Intermediaries and the statutory powers, the SC also utilises other forms of
Licensing Handbook; non-statutory enforcement tools in the exercise of its
monitoring, gate-keeping and supervisory functions.
• An individual who at the material time
was the managing director and CEO of an Infringement notices are issued where breaches of
investment bank for breaching a provision securities laws or guidelines detected do not warrant
in the Guidelines on Market Conduct the initiation of a formal enforcement action or the
and Business Practices for Stockbroking imposition of an administrative action.
Companies and Licensed Representatives;
Infringement notices issued by the SC include the
• 10 licensed intermediaries for delay in following:
submitting the monthly statistical returns for
wholesale funds and a post-issuance notice • Supervisory letters involving Infringement
under the LOLA framework; – issued pursuant to the exercise of a
supervisory function or the conduct of
• 2 registered persons for delay in submitting an examination under section 126 of the
monthly post-issuance reports for structured Securities Commission Malaysia Act 1993
products under the LOLA Framework; (SCMA);

• A licensed individual for failure to comply • Warning letters – issued pursuant to the
with the condition of the licence which discharge of the SC’s gate-keeping function
requires a person to remain fit and proper at such as the issuance of licences, approval
all times and for breaching a provision in the of corporate proposals and review of
Guidelines on Market Conduct and Business prospectuses. Warning letters may be issued
Practices for Stockbroking Companies and to licensed, registered persons or other
Licensed Representatives; professionals or experts;

• 5 individual directors of a PLC for their • Non-compliance letters – issued pursuant
respective failure to comply with approved to the discharge of the SC’s gate-keeping
accounting standards in preparing the PLC’s function for minor breaches; and
audited financial statements;
• Cease and desist letters – issued to stop or
• Persons acting in concert for breaches of prevent violation of securities laws. Cease and
take-overs and mergers provision; desist letters may be issued to a person who is
committing or about to commit an infringing
• An individual who had provided false act. Failure to comply with the cease and
information to an investigating officer of the desist order may attract formal enforcement
SC; and action by the SC.

• An individual for carrying out a regulated In 2018, 66 infringement notices were issued by the
activity without a licence. SC as detailed in Table 3.

184 | PART 5 »» STATEMENTS, STATiSTiCS ANd ACTiviTiES

NEW_90-222.indd 184 2/21/19 9:30 AM