Page 51 - SC Annual Report 2018 (ENG)
P. 51
Securities
Commission
Malaysia
ANNUAL
REPORT
2018
Diagram 4
common areas of non-compliance with approved accounting standards and regulatory actions taken
common areas of non-compliance Actions taken
Impairment assessment
• Unreasonable and unsupported assumptions
used
• Incorrect preparation of cash flow projections Administrative actions
on 3 PLCs and 12
$ Revenue recognition directors
•
Point of revenue recognition was wrongly determined
Share-based payment Supervisory Letters to
• Inappropriate valuation of schemes related to 3 PLCs and its board of
share-based payment directors and 11 former
directors
Joint arrangement
• Wrong classification of investments in a
joint arrangement
Ensuring orderly trading conduct There was an encouraging trend of increasing
through proactive surveillance proactiveness by intermediaries in addressing
concerns on trading irregularities. Intermediaries
The SC continues to reinforce orderly trading actively initiated communications with Bursa
conduct and governance among market participants Malaysia on potential trading irregularities. The
through market surveillance. Pre-emptive measures number of intermediaries with trade surveillance
were undertaken in collaboration with Bursa system also doubled in the last three years.
Malaysia as the frontline regulator, to address
undesirable trading practices that can pose risks to
the integrity of the capital market. These measures Regulatory actions against pump-and-
also serve as a reminder to market participants of dump schemes on the internet and
their roles and responsibilities in maintaining a fair social media
and orderly market. When necessary, engagements
were held to communicate the standards of conduct The SC continues to dedicate its market
and governance expected of them. surveillance and enforcement efforts towards
protecting investors from falling prey to pump-
To complement the SC’s pre-emptive surveillance and-dump schemes on the internet and social
measures, communication notes were issued by media. A range of actions were undertaken to
Bursa Malaysia to provide clarity on the expectations halt the operations of identified pump-and-dump
of trading conduct by intermediaries. It also schemes. This included engagements with the
encourages the adoption of recommended controls perpetrators which resulted in them ceasing their
and best practices to deter and prevent market activities.
misconduct.
PART 2 »» SHAPING MARKET CONDUCT | 41
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