MAS Imposes Composition Amount of $27,000 on Merrill Lynch International Bank Limited (Merchant Bank) for Contravention of Section 99B(3)(a) of the Securities and Futures Act

1      On 19 December 2011, Merrill Lynch International Bank Limited (Merchant Bank) ["MLIB"] paid a composition amount of $27,000 for contravening section 99B(3)(a) of the SFA.

2      Section 99B(3)(a) of the SFA provides that a principal shall not permit any individual to carry on business in any type of regulated activity on its behalf unless the individual is an appointed representative, provisional representative or temporary representative in respect of that type of regulated activity.

3      MLIB has contravened section 99B(3)(a) of the SFA as it had permitted:

(a) 7 of its representatives to conduct the regulated activity of fund management before the regulated activity was duly reflected against their names in the public register during the period from 26 November 2010 to 1 April 2011; and

(b) 83 of its representatives to conduct the regulated activity of fund management before the regulated activity was duly reflected against their names in the public register during the period from 26 November 2010 to 31 August 2011.

4      MLIB has confirmed to MAS that the company has put in place relevant policies and procedures to prevent recurrence of such contravention.

MAS expects all financial institutions to ensure that they do not permit any individual to conduct any type of regulated activity under the SFA on their behalf unless the individual is an appointed, provisional or temporary representative in respect of that type of regulated activity.

Last Modified on 26/11/2016