Kenyataan Media
BURSA MALAYSIA REPRIMANDS, FINES AND IMPOSES RESTRICTION ON WAHID BIN JOHAN FOR UNETHICAL PRACTICES
Bursa Malaysia Securities Berhad (Bursa Securities) has publicly reprimanded, imposed a fine of RM10,000 and ordered to restrict Wahid bin Johan (Wahid) from trading on or through the stock market of the Exchange for a period of 18 months for engaging in unethical activities, including making a false declaration resulting in wrongful payment of a client’s monies to another client.
Wahid, who was at the material time of the breach, a Commissioned Dealer’s Representative (DR) of MIMB Investment Bank Berhad (MIMB), triggered and breached the provisions of Rules 404.3(1)(a) & (b), 1302.1(1)(a) & (g) and 1302.1(1)(i)(vi) of the Rules of Bursa Securities.
Bursa Securities views misconducts that compromise the protection of client’s monies seriously. DRs as Registered Persons, under the Rules of Bursa Securities, have the duty and responsibility to ensure that client’s monies are properly accounted for and used only for purposes intended by the client. Bursa Securities will not hesitate to take appropriate actions, including imposing long periods of suspension, striking off from the Register or imposing fines, that commensurate with the severity of the breach.
BACKGROUND
The finding of the breach and the imposition of the above sanctions on Wahid were made pursuant to Rule 1301.2 of the Rules of Bursa Securities upon completion of due process and after taking into consideration all facts and circumstances, including that:-
- Wahid had made a false declaration that monies which were deposited by another client into the trust account of the Participating Organisation (PO) belonged to his client, causing the PO to pay the said monies to his client who was not entitled to the monies.
- Wahid admitted that he had acted on the instructions of a third party when he declared that the monies deposited into the PO’s trust account belonged to his client. This subsequently caused the PO’s other client to incur losses.
- Wahid’s conduct by falsely declaring the monies which did not belong to his client based on representation by a third party, without proper due diligence, showed failure on his part to carry out his duties efficiently and fairly as a Registered Person.
- As a DR, Wahid must, amongst others:
- observe professional standards of integrity and fair dealing;
- act honestly and in the best interest of his client;
- carry out his duties efficiently, honestly and fairly; and
- not apply any amount paid or securities deposited by a client to any person not entitled thereto or for payment other than his client’s trading account.
ADDENDUM
Rules 404.3(1)(a) & (b), 1302.1(1)(a) & (g) and 1302.1(1)(i)(vi) of the Rules of Bursa Securities (the Rules) state, amongst others, that:-
- any Participant who, in any circumstances, directly or indirectly, being a DR:
- commits a breach of or violates any of the Rules;
- fails to perform his duties efficiently, honestly or fairly; and
- applies any amount paid or securities deposited by a client to any person not entitled thereto or for payment other than the said client’s trading account,
shall be liable and be dealt with in accordance with the provisions of the Rules relating to the same; and
- every DR employed or engaged by the PO shall at all times observe professional standards of integrity and fair dealing; and act honestly and in the best interest of their