Page 61 - SC SCAR 2023 ENGLISH Flipbook

Leveraging the SC’s Administrative Actions
Apart from initiating criminal or civil actions, the SC also leverages its statutory powers for administrative actions, which provides a full spectrum of sanctions and remedies against the persons in breach (Table 25).
In 2023, a total penalty of RM19.53 million has been imposed against 40 persons for their misconduct and breaches under the securities laws and guidelines issued by the SC as follows:
• Nine licensed intermediaries for delay in submitting the annual report and/or investment returns for the relevant wholesale funds;
• Eight individuals who had breached provisions under Securities Industry (Central Depositories) Act 1991 (SICDA), including causing and/or permitting his/her shares to be deposited and/or maintained in a third-party’s trading account and who had effected trades in his/her shares in a third-party’s trading account;
• Four individuals who carried on a business in a regulated activity of providing investment advice without licence;
• Three individuals who engaged in transactions which involved proceeds of unlawful activities;
TABLE 25
Administrative sanctions imposed
• One entity and its director who failed to seek recognition by the SC in relation to making available, offer for subscription or purchase, or issue an invitation to subscribe for or purchase of foreign securities and failure to register a disclosure document and prospectus;
• One entity and four of its directors who submitted false information pertaining to the validity of its Qualified Persons’ status to the SC (via Annual Declaration) and Bursa Malaysia (via Listing Application);
• One entity who failed to submit true, complete and accurate information to the SC and who failed to promptly report potential breaches of securities laws to the SC;
• One group of persons acting in concert for failing to undertake a mandatory offer; and
• Two entities, comprising a Private Equity Management Corporation and its Private Equity Fund, together with their respective directors, failed to register a prospectus with the SC for making available, offer for subscription or purchase, or issue an invitation to subscribe or purchase the Private Equity Fund’s Cumulative Redeemable Preference Shares to non- sophisticated investors alongside with other breaches of securities laws.
PART 2 REGULATORY PERFORMANCE AND OUTCOMES
Type of persons
Sanctions imposed
Reprimand
Penalty
Restitution
Directive
Revocation of licence
Suspension of licence
Persons acting in concert
11
1
-
1
-
-
Registered persons
18
2
-
2
-
-
Directors of registered persons
6
2
-
-
-
-
Licensed persons
10
16
-
1
-
-
Other entities/ individuals
35
23
-
12
-
-
TOTAL
80
44
-
16
-
-
SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023 59