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BURSA MALAYSIA SECURITIES REPRIMANDS, FINES AND SUSPENDS WONG WING HAUR FOR ENGAGING IN MANIPULATIVE DEALING ACTIVITIES

21 Aug 2017

KUALA LUMPUR, 21 AUGUST 2017 – Bursa Malaysia Securities Berhad (635998-W) (Bursa Malaysia Securities) has publicly reprimanded, imposed a fine of RM60,000 and suspended/restricted (as the case may be) Wong Wing Haur (WWH) for 10 months as/from being a Registered Person of Bursa Malaysia Securities, for engaging in manipulative trading activities in the securities of 6 counters (the Relevant Counters), namely:-

(i)    Asdion Berhad (ASDION);

(ii)   Nexgram Holdings Berhad (NEXGRAM);

(iii)  Ire-Tex Corporation Berhad (IRETEX);

(iv)  NEXGRAM-WA;

(v)   NEXGRAM-WC; and

(vi)  MQ Technology Berhad (MQTECH).

In addition, WWH was required to undergo training on conduct or professionalism of Dealer’s Representatives (DRs)/market offences.

WWH, who was at the material time of the breach a Salaried Dealer’s Representative of JF Apex Securities Bhd at its Principal Office, had contravened and/or triggered the provisions of Rules 3.14(d), (e) & (g) and 5.01(b) of the Rules of Bursa Malaysia Securities and paragraph 1.1(1)(h) of Directives No. 5-001 of the Participating Organisations’ Directives and Guidance (POs’ Directives).

The finding of the breach and imposition of the sanctions on WWH were made pursuant to Rule 15.02 of the Rules of Bursa Malaysia Securities after according due process to WWH and taking into consideration all facts and circumstances, including the severity, extent and impact of the breaches and the conduct of WWH and his co-operation with Bursa Malaysia Securities in the enforcement action against him by admitting/not disputing the breaches, hence resulting in earlier resolution of the case. In this regard, in determining the sanctions to be imposed, Bursa Malaysia Securities will take into account the extent of co-operation by the errant party (including admission of the breaches/timing of the initiation of settlement by the errant party).

Bursa Malaysia Securities places strong emphasis on the need to maintain a fair and orderly market and will not tolerate any acts or practices which could lead to false trading, manipulative activities and/or compromise the integrity of the market. Bursa Malaysia Securities will not hesitate to take appropriate actions against anyone who engages in such

misconducts which commensurate with the severity of the breach, including suspension/striking off a Registered Person from the Register and imposition of fines.

BACKGROUND

(1) The breaches by WWH were in relation to his manipulative trading activities in the securities of the Relevant Counters through the accounts of 4 clients (Clients) (all of which were either directly or indirectly related to each other/with the Relevant Counters) on several trading days over a period time (the Relevant Period) which involved/had the following characteristics (Manipulative Trading Activities):-

These Manipulative Trading Activities had given rise to the creation of a false/misleading appearance of active trading and/or in respect of the market for and/or the price of the securities of the Relevant Counters (False/Misleading Appearance of Securities).

(2) Despite the red flags of irregular trading in the shares of the Relevant Counters, including, amongst others:-

WWH had failed to be alerted and raised his suspicion of the questionable trades and engaged in/continued to facilitate the Clients’ Manipulative Trading Activities including the Churning activities which were carried out over a period of time. In this regard, WWH had failed to make proper assessment of the Clients’ trading instructions/activities and acted as a mere order taker which was not an acceptable conduct of a responsible Registered Person (RP).

(3) As a RP in carrying out his dealing activities, WWH must at all times:-

ADDENDUM

Rules 3.14(d), (e) & (g) and 5.01(b) of the Rules of Bursa Malaysia Securities and paragraph 1.1(1)(h) of Directives No. 5-001 of the POs’ Directives (which came into effect on 2 May 2013) state, amongst others, that a Registered Person must:-

  • observe professional conduct, standards of integrity and fair dealing, exercise proper skill, care and diligence and carry out the Registered Person’s duties in a manner that contributes to the maintenance of an orderly and fair stock market;
  • in the conduct of the PO’s business, not through any act or omission, do anything which may result in or has the effect of the market not being orderly and fair; and 
  • not engage in any act or practice that might lead to a false or misleading appearance of active trading in any securities on the stock market of the Exchange or a false or misleading appearance with respect to the market for, or the price of, any such securities, or directly or indirectly be tantamount to stock market manipulation.