Enforcement
Statistics
Sanctions were imposed for various breaches of the Bursa Malaysia Listing Requirements
against listed companies and their directors as shown in the table below. For 2009, the total
number of sanctions issued was 308 (against 34 listed issuers and 76 directors) and included
reprimand and fines amounting to RM3,760,750.
Public Reprimand and Fine
|
0
|
191
|
191 |
| Public Reprimand |
65 |
37 |
102 |
| Private Reprimand |
11 |
4 |
15 |
| Total Sanctions |
76 |
232 |
308 |
| Total Fines Imposed (RM) |
0 |
3,760,750 |
3,760,750 |
In 2009, as part of the efforts to enhance the effectiveness of enforcement actions, Bursa
has mandated errant listed companies to ensure its directors and the relevant personnel attend a
training programme in relation to compliance with the Bursa Malaysia Listing Requirements and in
particular the area where the obligation is breached (“Mandated Training Requirement”). In 2009,
the Mandated Training Requirement was imposed on 10 listed companies which have committed breaches
pertaining to related party transaction requirements and financial reporting obligations.
Enforcement actions were also instituted against market participants, their dealer
representatives and agents for violation of Bursa Malaysia Rules. In 2009, similar to 2008, there
was greater enforcement focus on material breaches such as market offences e.g. intra day short
selling, ‘marking the close’, price manipulation and unauthorized trading in client’s account.
In an effort to encourage and enhance self-regulation amongst market participants, a new
approach was adopted in cases of supervisory breaches/lapses or ineffective compliance function or
internal control weaknesses/lapses whereby instead of merely imposing fines, enforceable conditions
are imposed on market participants. Under this approach, payment of a portion of the fine may be
deferred subject to fulfilment of the enforceable conditions imposed by Bursa within a certain time
frame. The market participants are imposed conditions, amongst others, to put in place an enhanced
supervisory system and/or compliance function and/or internal controls immediately and report its
progress to Bursa on a monthly basis. This gives the market participants a chance to proactively
rectify a breach and enhance their method of supervision, compliance function and internal controls
in order to avoid paying the deferred fine. However, this approach of deferred fine will not be
applicable for any breach that involves market misconduct or deliberate misconduct or fraud,
intentional or reckless act resulting in the breach or attempt to conceal the breach.
Further, in certain market offences cases, Bursa imposed on Dealer’s Representatives (“DRs”)
the requirement to undergo certain educational programs like the attendance of course(s) relating
to conduct or professionalism of DRs / market offences with the additional CPE points to be
collected by the DRs in addition to the existing yearly requisite CPE points. This is aimed at
educating the DRs on their duties and responsibilities and enhancing their knowledge on market
offences to prevent future breaches of a similar nature.
The statistics of the enforcement actions taken in 2009 are presented in the table below:
| Reprimand and/or Fine and/or Suspension [& additional condition(s)] |
- |
3 |
- |
- |
3 |
| Fine & Deferred Suspension |
- |
3 |
- |
1 |
4 |
| Fine & Public Reprimand |
1 |
- |
- |
- |
1
|
| Fines/Deferred Fine with enforceable conditions |
24 |
41 |
- |
- |
65 |
Private Reprimand
|
17 |
3 |
8
|
5 |
33 |
| Caution |
20 |
1 |
5 |
1 |
27 |
| Total Sanctions |
62 |
51 |
13 |
7 |
133 |
| Total Fines Imposed (RM) |
1,384,500 |
118,200 |
- |
10,000
|
1,512,700 |
In order to enhance market awareness, the more severe breaches were imposed
public
sanctions.
