SC fines AmInvestment RM100,000

PETALING JAYA (Feb 5, 2014): The Securities Commission Malaysia (SC) has taken its first administrative action for the year by fining AmInvestment Bank Bhd RM100,000 for allowing unlicensed persons to solicit fund management clients, according to an action published on its website on Jan 29, 2014.
AmInvestment was fined by the SC for breaching the Capital Markets and Services Act 2007 for "allowing unlicensed persons to carry out activities of a licensed person in soliciting fund management clients, including receiving trading orders directly from fund management clients."
All administrative actions taken by the SC are subject to the aggrieved person's right to appeal to the commission for a review of the decision within 30 days of the decision at first instance.
In 2013, the SC undertook six administrative actions against errant companies and individuals. During that period, it reprimanded three companies and fined five of them a total of RM3.01 million.
The SC's first administrative action of 2013 was when it took action against TA Securities Holdings Bhd, fining it RM150,000 on April 25, 2013 for failing to have and implement an effective system to detect and report suspicious transactions, provide adequate employee training and conduct independent audit on compliance programmes and place adequate customer due diligence processes and "know-your-client" requirements.
In May 2013, the SC fined and reprimanded brothers SM Nasarudin SM Nasimuddin and SM Faliq SM Nasimuddin of NAZA Group of companies for breach of its rules.
The brothers were fined RM500,000 for failing to carry out a mandatory offer for the remaining shares in Kumpulan Jetson Bhd. Nasarudin and Faliq bought into Kumpulan Jetson through its private vehicle Superior Pavillion Sdn Bhd in 2010.
The action against Superior Pavillion, the two brothers and Datuk Ahmad Ibrahim was taken on May 10, 2013.
On July 15 2013, SC reprimanded Universal Trustee (Malaysia) Bhd, which is linked to the Negri Sembilan royalty via Syarikat Pesaka Antah Sdn Bhd, for failing to inform the regulator of its inability to remedy breaches of the trust deed.
The SC said the unit trust manager had also failed to call for a meeting of bondholders and placing before such a meeting, proposals for the protection of the interest of the bondholders as appropriate and obtain their directions.
On Nov 7 2013, SC imposed a fine of RM200,000 on Ranhill Energy and Resources Bhd (Ranhill) and reprimanded and fined Tan Sri Hamdan Mohamad RM 300,000 for failure to disclose to SC material changes related to Ranhill's listing.
Both Ranhill and Tan Sri Hamdan, executive director/president and chief executive of Ranhill, were found to have breached section 215(3) read with section 354(1) of the Capital Markets and Services Act 2007, for failing to immediately inform the SC of the suspension of the licence issued by Petroliam Nasional Bhd to Perunding Ranhill Worley Sdn Bhd (PRW), a company controlled by Tan Sri Hamdan.
Under the Capital Market and Services Act 2007 (CMSA), the SC's enforcement and legislation is divided into four sections, namely criminal prosecution, civil actions, administrative actions and cases compounded.