Civil Penalty Action taken against Kunye Tagi for insider trading
Singapore, 11 May 2018… Following a joint investigation by the CAD and MAS, civil penalty action has been taken against Ms Kunye Tagi for insider trading in the shares of Genting Singapore PLC (Genting).
2 On 14 May 2015, Genting announced its financial losses for the quarter ending 31 March 2015. Following the financial results announcement, Genting shares closed 5.9% lower, at $0.955 the next trading day.
3 On 14 and 24 April 2015, Ms Tagi, who was Genting’s Vice President of Finance then, sold 175,000 Genting shares while in possession of non-public price-sensitive information concerning the financial results. The sale of the shares enabled Ms Tagi to avoid a loss of $13,625.
4 Ms Tagi has admitted to contravening the insider trading provision under section 218(2)(a) of the Securities and Futures Act, and has paid MAS a civil penalty of S$50,000 without court action.
(A) The civil penalty regime
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.
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).
(B) Insider Trading under Section 218(2)(a)
Section 218(2)(a) of the SFA prohibits a person who is in possession of materially price-sensitive information concerning a corporation (to which the person is connected), which the person knows is materially price-sensitive and not generally available, from (whether as principal or agent) subscribing for, purchasing, selling, or entering into an agreement to subscribe for, purchase or sell those securities of that corporation.