The Monetary Authority of Singapore (MAS) has taken civil penalty enforcement action against Koh Huat Heng for insider trading under Section 219(2)(a) of the Securities & Futures Act (SFA).
Mr Koh was a relationship manager and a Team Head in the Affluent Banking Unit of Malayan Banking Bhd (Singapore branch) (Maybank).
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On 18 June 2013, he purchased 140,000 shares in Sin Heng Machinery Limited (Sin Heng), a company listed on the Singapore Exchange Securities Trading, while in possession of non-public and price-sensitive information concerning Sin Heng’s intention to undertake a rights issue exercise. Mr Koh had obtained this information in the course of his work at Maybank.
Subsequently, on 26 June 2013, Sin Heng announced its intention to undertake the rights issue of up to 114,805,000 new ordinary shares at an issue price of S$0.16 per rights share, on the basis of one rights share for every four existing ordinary shares held by the shareholders of the company.
Mr Koh has admitted to contravening Section 219(2)(a) of the SFA and has paid MAS a civil penalty of $50,000, without any court action. MAS has also issued an order under section 59(1)(bb) of the Financial Advisers Act, prohibiting Mr Koh from (i) providing any financial advisory service, and (ii) taking part, directly or indirectly, in the management of, acting as a director of, or becoming a substantial shareholder of a licensed financial adviser or exempt financial adviser, for a period of 3 years.
Lee Boon Ngiap, assistant managing director Capital Markets, MAS, said: "MAS expects a person who has been appointed as a representative of a financial adviser to act honestly and with integrity, especially in relation to the information that he obtains in the course of his work. To maintain the public’s confidence in our financial services sector, we will take firm action against any representative who fails to do so."
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