Bursa Malaysia Securities strike off two dealer’s representatives for violations of rules

KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded, fined and ordered to strike off two dealer’s representatives (DRs) for breaches of the rules, amongst others, abuse/improper use of clients’ trade information to carry out front-running activities and unlawful trading in a client’s account.

In a statement today, it said Abdul Karim Yasin and Sobri Ahmad were publicly reprimanded, fined RM230,200 and RM72,800, respectively, and strike off as registered persons of Bursa Malaysia Securities for the breaches.

It said Abdul Karim was a salaried DR of CIMB Investment Bank Bhd (CIMB-IB) and thereafter CGS-CIMB Securities Sdn Bhd (CGS-CIMB), handling the dealing activities for the institutional clients of CIMB-IB/CGS-CIMB.

Meanwhile, it said Sobri was a commissioned DR of Hong Leong Investment Bank Bhd (HLIBB) and had acted based on the instructions of Abdul Karim.

Bursa Malaysia Securities said Abdul Karim had abused or improperly used the trade information of some institutional clients of CIMBIB/CGS-CIMB and gave instructions to Sobri to buy/sell in the same counters traded by him for the institutional clients using a third party’s account at HLIBB and executed profitable intraday trades.

"Bursa Malaysia Securities views seriously all breaches/misconducts that impinge on the integrity and professional conduct/etiquette of DRs and registered persons and which compromise client’s protection as such misconducts may adversely affect and damage market integrity and market confidence.

"Bursa Malaysia Securities will not hesitate to take appropriate actions against anyone who engages in such misconducts or fails to carry out their duties honestly with utmost integrity and act in the best interest of the client and compromises the confidentiality of clients’ information, including striking off a registered person from the register and imposing a fine commensurate with the severity of the breach,” it said.

It added that the public reprimand was imposed as a deterrent consideration to create market awareness and reinforce the serious view taken by Bursa Malaysia Securities on market offences and breach of trust placed by clients on registered persons. - Bernama

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