Clamping down hard on fraudulent activities

KUALA LUMPUR: The Securities Commission (SC) last year clamped down hard on those who broke its rules and regulations in order to safeguard the dignity of Malaysia's capital market.

Last year, many firms, groups and individuals were charged for various fraudulent activities, including illegal fund management activities, insider trading, market manipulation, abetting an act to defraud and short selling.

In its annual report 2012, the regulator said the Investigation Department received 36 referrals from departments within the SC, mainly from the Market Surveillance and Investors Affairs and Complaints.

Referrals were also received from other law enforcement agencies.

Insider trading investigations, which comprise more than half of the department's active cases, continue to be a high priority area for SC. There were 61 active investigations last year with substantial resources devoted to conducting insider trading investigations.

There were a significant number of witnesses for statements who consist of professionals, such as investment bankers, lawyers and company secretaries.

The SC continues to rely on co-operation from foreign regulators, via the International Organisation of Securities Commissions' multilateral memorandum of understanding concerning consultation and co-operation and exchange of information, to facilitate its investigations into cross-border transactions.

Through the partnership, the SC made various requests for investigation assistance to foreign regulators.

Last year, seven administrative sanctions were meted out for cases of misconduct, breaches of licensing conditions and omission of material information submitted to the SC.