MAS Takes Civil Penalty Action Against Wong Teck Kui for Insider Trading

Singapore, 25 January 2016…  The Monetary Authority of Singapore (MAS) has taken civil penalty action under the Securities and Futures Act (SFA) against Mr Wong Teck Kui for insider trading in the shares of Time Watch Investments Limited (TWI). Mr Wong has admitted to contravening section 219(2)(a) of the SFA and has paid MAS a civil penalty of $110,000 without court action.

2              On 17 and 18 January 2011, Mr Wong, an appointed representative with UOB Kay Hian Private Limited (UOBKH), purchased a total of 1.3 million TWI shares through trading accounts held by his wife, sister and mother with UOBKH while he was in possession of non-public information concerning a proposed voluntary delisting and concurrent exit offer for TWI shares.

3              On 19 January 2011, Red Rewarding Limited and TWI announced a proposed delisting and exit cash offer for TWI shares and Mr Wong made a profit of $43,636 from his insider trades. 

4              MAS has also issued a prohibition order to Mr Wong pursuant to section 101A of the SFA, prohibiting him from (i) conducting business in any regulated activity under the SFA or acting as a representative in respect of any regulated activity under the SFA; and (ii) taking part in the management of any holder of a capital market services licence or any person exempt from holding a capital market services licence under section 99(1) of the SFA in Singapore, for a period of two (2) years with effect from 29 January 2016.

5             This matter was referred to MAS by Singapore Exchange Securities Trading Limited.

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Notes to Editor

 

(A)  The civil penalty regime

(i) A civil penalty action is not a criminal action and does not attract criminal sanctions. The civil penalty regime, designed to complement criminal sanctions and provide a nuanced approach to combat market misconduct, became operational at the beginning of 2004.

(ii) Under section 232 of the SFA, MAS may enter into an agreement with any person for that person to pay, with or without admission of liability, a civil penalty for contravening any provision of Part XII of the SFA.  The civil penalty may be up to three times the amount of the profit gained or loss avoided by that person as a result of the contravention, subject to a minimum of $50,000 (if the person is not a corporation) or $100,000 (if the person is a corporation). Where the contravention did not result in the person gaining a profit or avoiding a loss, the civil penalty may be up to $2 million, subject to a minimum of $50,000.

(B)  Insider Trading under section 219(2)(a) of the SFA

Section 219(2)(a) prohibits a person who is in possession of materially price-sensitive information concerning a corporation (to which he is not connected), which he knows or ought to know is materially price-sensitive and not generally available, from subscribing for, purchasing, selling, or entering into an agreement to subscribe for, purchase or sell those securities of that corporation.

Last Modified on 26/11/2016