MAS PROHIBITS TOH ONG TIAM FROM DEALING IN STRUCTURED NOTES TRANSACTIONS FOR A YEAR

1 MAS has prohibited Toh Ong Tiam, a holder of a capital markets services (“CMS”) representative’s licence with Phillip Securities Pte Ltd (“PSPL”), from dealing in any new transactions involving structured notes (as defined under regulation 2(1) of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005) for one year with effect from 9 July 2010.

2 PSPL holds a CMS licence under the Securities and Futures Act (Cap. 289).

3 From July 2006 to June 2007 Mr Toh sent certain clients emails containing materially false and misleading statements about various series of structured notes linked to Lehman Brothers that were issued by Minibond Ltd. These included statements that proceeds of the notes were invested in the reference entities’ bonds, in AA-rated bonds or an AA-rated tranche of bonds. Such statements were materially false and inconsistent with the pricing statements which stated that the underlying securities consisted of portfolio credit-linked notes or synthetic collateralised debt obligation securities rated AA or Aa2.

4 MAS views Mr Toh’s performance as unsatisfactory.  Pursuant to section 95(6) read with sections 95(2)(b)(i) and 87(3)(j) of the Securities and Futures Act (Cap. 289), MAS has issued a prohibition order against Mr Toh.

Customers expect licensees and their representatives to provide clear and accurate information about investment products. Licensees and their representatives must exercise all due care and skill to ensure, in all communications with customers, that statements made about investment products are clear and accurate.