MAS ISSUES REPRIMAND TO UOB KAY HIAN PTE LTD ("UOBKH") FOR FAILURE TO PROPERLY ADMINISTER EXAMINATION

1 SGX’s Appeals Committee had fined UOBKH $115,000 on 6 February 2009 for breaching SGX-ST’s directives on the administration of the Trading Representative Examination on SGX Extended Settlement Contracts; this is a breach of SGX-ST Rule 4.6.1(1).  UOBKH was administering the examination for representatives who wished to deal in SGX Extended Settlement Contracts.  It did not take adequate measures to safeguard the integrity of the examination and ensure the confidentiality of the examination papers.  

2 On 22 May 2009, MAS reprimanded UOBKH for its breach of the SGX-ST Rules and failure to meet the standards expected of a capital markets services licensee.  UOBKH had failed to satisfy MAS that it had adequate internal control systems and procedures to ensure that its representatives possess the competence and capability to conduct the regulated activity for which they are licensed, in this case, the requisite skills and expertise to deal in the new product.  

MAS expects capital markets services licence holders to implement effective policies and procedures to ensure that their representatives are properly trained and possess the requisite skills and expertise before they are allowed to deal in any new products.