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Enforcement

We take a very strict view of breaches to our Business Rules and Listing Requirements and undertake enforcement proceedings and actions according to the severity of the breach as these infractions have the potential to undermine investors’ rights and protection as well as market integrity.

Enforcement Statistics

Enforcement Statistics

As enunciated under our Overview of Enforcement, we seek to deter future breaches, educate market participants, promote a better culture of compliance and standards of business conduct and corporate governance practices through our enforcement actions.

To this end, we have taken various types of enforcement actions for breaches of our rules over the years.

In 2017, enforcement actions were taken against 9 Public Listed Companies (“PLCs”) and 21 directors (of 6 PLCs) for various breaches of the Listing Requirements as compared to 14 PLCs and 38 directors (of 8 PLCs) in 2016.

The enforcement actions taken against these parties ranged from private reprimand to public reprimand coupled with fines. Details of the enforcement actions (reprimand and above) completed/taken in 2017 and comparisons with 2016 are set out below:-.

Sanctions Imposed#PLCsDirectors
 2016  2017  2016  2017
Public Reprimand and Fine  -  -  38  19
Public Reprimand  11  8  3  2
Private Reprimand  4  2  -  -
Private Reprimand and Fine  -  -  3  -
Suspension  -  -  -  -
Total no. of PLCs/Directors#  14  9  38  21
Total Fines Imposed (RM)  -  -  2,117,000  5,040,800

# more than one sanction may have been imposed on a director or PLC.

In addition to the sanctions imposed above, we also issued directives for PLCs to conduct limited review on quarterly reports as well as for directors/relevant personnel of the PLCs to attend training programs in relation to financial reporting and compliance with the Listing Requirements as follows:

  2016 2017
Limited Review on Quarterly Reports  7  3
Director's Training  11  6

We generally take enforcement actions for breaches pertaining to:-

We view financial reporting breaches (i.e. timely submission as well as accurate reporting of financial statements) strictly as the requirement for companies to submit timely and accurate financial statements is of paramount importance to aid investment decisions and ensure a fair and orderly market for securities that are traded on Bursa Malaysia. However, we note that there has been significant improvement in compliance by PLCs in ensuring timely and accurate reporting of financial information as evident from the reduction of breaches in this area by more than 60% since 2008 (the year where we commenced stricter director enforcement action).

As for violations of our Business Rules, enforcement actions were instituted against companies (i.e. Participating Organisations, Trading Participants etc.) and their Registered Persons and the key enforcement actions were for supervisory breaches and market/trading misconduct by Registered Persons.

Details of the enforcement actions (reprimand and above) taken for breaches of the Business Rules in 2016 and 2017 are as follows:-

Type of Action Taken# No. of Companies No. of Registered Persons Total
2016 2017 2016 2017 2016 2017
Private Reprimand and/or Fine/ Deferred Fine and/or Suspension and/or Mandatory Training 8 3 7 1 15 4
Public Reprimand and fine/Deferred Fine and/or Suspension/Ddeferred Suspension/Striking Off and/or Mandatory Training - - 10 6 10 6
Total 8 3 17 7 25 10
Total Fines Imposed (RM) 233,500 9,000 2,047,200 158,000 2,280,700 167,000

# more than one sanction may have been imposed on a company or Registered Person.

In 2017, enforcement actions were taken against 3 companies (as compared to 8 in 2016) and 7 Registered Persons (as compared to 17 Registered Persons in 2016) for various breaches of the Business Rules.

The enforcement actions taken in 2017 included reprimands (both public and private), suspension/deferred suspension, requirement to attend training and fines amounting to RM167,000 as compared to RM2,280,700 in 2016. For Registered Persons who were imposed a public reprimand and fine, a suspension/deferred suspension was also imposed on all 6 Registered Persons in 2017. These enforcement actions were mainly in the area of market offences and unauthorised trades/breaches relating to usage of client’s account and commission sharing breach.

As part of our effort to educate market participants, inform the market of the range of actions taken, instil market confidence and ensure transparency in our enforcement actions, information on common breaches of our Rules are posted on our website. Where the sanctions imposed include a public reprimand, a media release (together with the basis for the findings of the breach) was also issued.


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