MAS issues Prohibition Orders against three individuals for dishonest conduct
Singapore, 9 May 2019… The Monetary Authority of Singapore (MAS) has issued prohibition orders (POs) against three individuals for dishonest conduct. The individuals are:
|Name||Duration of Prohibition Orders|
|Mr Jeremy Lee Seow Poh,
former representative of Jefferies Singapore Limited (JSL)
|Mr Ong Eng Keong,
former representative of JSL
|Mr Yap Chee Hoe,
former representative of Legacy FA Pte. Ltd. (Legacy)
All three prohibition orders took effect from 8 May 2019.
POs issued against Mr Lee and Mr Ong
2 Mr Lee and Mr Ong are prohibited from performing any regulated activity under the Securities and Futures Act (SFA) and providing any financial advisory service under the Financial Advisers Act (FAA). They are also prohibited from taking part in the management, acting as a director or becoming a substantial shareholder of any capital market services firm under the SFA and any financial advisory firm under the FAA
3 Mr Lee was the Managing Director and Head of Sales for the fixed income desk of JSL while Mr Ong was the Senior Vice President, Credit Trading in the same company. Both men were prohibited from trading in bonds during their employment with JSL without the company’s knowledge and approval as this could conflict with the trading activities of JSL and its clients. Between May 2011 and December 2012, Mr Lee traded in bonds using his private banking account that was intentionally not disclosed to JSL. He also colluded with Mr Ong to trade against JSL using privileged information which they obtained in their course of work on JSL’s fixed income desk, and shared the trading profit with Mr Ong. JSL would not have entered into these trades if it was aware that Mr Lee was the counterparty due to possible conflict between the personal interests of Mr Lee and Mr Ong, and that of JSL and its clients. By their deceptive conduct, they had contravened section 201(b) of the SFA.
4 In September 2016, Mr Lee joined DZ Bank AG Deutsche Zentral (DZ) as its Director, Head of Sales Asia for Capital Market Sales and as an appointed representative. During a pre-employment fit and proper test conducted by DZ, Mr Lee declared that he had not been subject to any disciplinary proceedings by his former employer. This declaration was false as JSL had issued Mr Lee with a written compliance warning for improper business conduct in the handling of a customer order in 2015. On the basis of Mr Lee’s statement, DZ assessed Mr Lee to be fit and proper to be its representative. By making a false statement to DZ, Mr Lee contravened section 99O(2)(a) of the SFA and section 23L(2)(a) of the FAA.
POs issued against Mr Yap
5 Mr Yap is prohibited from carrying on business as, and taking part in the management of an insurance intermediary under the Insurance Act (IA). He is also banned from providing any financial advisory service and taking part in the management, acting as a director or becoming a substantial shareholder of any financial advisory firm under the FAA
6 Mr Yap was an appointed representative of Legacy from February to July 2017. Between May and July 2017, Mr Yap forged the signatures of five individuals in their insurance application forms as he wanted to expedite their purchases of the insurance policies. Mr Yap had also provided false information concerning one individual’s health and employment status in one of the applications. The individuals did not suffer any losses as the applications were either withdrawn by the individuals or cancelled by the insurance company after Mr Yap’s misconduct was uncovered.
7 Mr Lee Boon Ngiap, Assistant Managing Director (Capital Markets), MAS, said: “MAS expects financial service professionals to uphold high standards of integrity and proper conduct. Professionals who fall short of these standards must be dealt with firmly to safeguard public trust in our financial institutions.”