MAS takes Civil Penalty Enforcement Action Against Lee Hon Sun for Contravening Law against Employment of Manipulative and Deceptive Devices

Singapore, 18 January 2013… The Monetary Authority of Singapore (MAS) has taken civil penalty enforcement action against Mr Lee Hon Sun for contravening Section 201(b) of the Securities and Futures Act (SFA), which prohibits the employment of manipulative and deceptive devices in connection with the subscription, purchase or sale of securities.

2   Mr Lee had opened a securities trading account with Phillip Securities Pte Ltd (PSPL) for the purpose of allowing a third party to trade and had deceived PSPL that the account was opened and operated for his benefit when the beneficial owner of the account was in fact the third party.

3   Mr Lee has admitted to contravening Section 201(b) of the SFA and paid MAS a civil penalty of $50,000, without court action.

4   The matter was referred to MAS by Singapore Exchange Securities Trading Ltd.

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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) Employment of Manipulative and Deceptive Devices under section 201(b) of the SFA

Under section 201(b) of the SFA, no person shall, directly or indirectly, in connection with the subscription, purchase or sale of any securities engage in any act, practice or course of business which operates as a fraud or deception, or is likely to operate as a fraud or deception, upon any person.

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Last Modified on 26/11/2016