Singapore, 2 September 2021… The Monetary Authority of Singapore (MAS) has issued a four-year prohibition order (PO) against Mr Lan Kangming and a three-year PO against Mr Wee Toon Lee, following their convictions in the State Courts for offences involving dishonesty.
2 Under the POs, which took effect from 1 September 2021, the two former representatives of UOB Kay Hian Private Limited (UOBKH) are prohibited from performing any regulated activity and from taking part in the management, acting as a director, or becoming a substantial shareholder of any capital market services firm under the Securities and Futures Act (SFA).
Background to the case
3 During an inspection conducted by MAS on UOBKH between June and August 2018, MAS requested to see the due diligence report (report) that had been prepared by a private investigation firm appointed by UOBKH for the initial public offering (IPO) of a company listed on the Singapore Exchange’s Catalist Board. Mr Lan and Mr Wee were both appointed representatives of UOBKH providing corporate financial advisory services for IPOs. Mr Lan was Mr Wee’s superior.
4 During the inspection, MAS asked whether certain background checks had been conducted on individuals and entities related to the company. Mr Lan told MAS that such checks had been conducted when he did not actually know whether they had been done. Mr Lan then instructed the private investigation firm to amend its original report to include further information regarding the purported background checks and submitted the amended report to MAS on 24 July 2018. Mr Wee told MAS that this was in fact the final version of the report prepared prior to the IPO when he knew that this was untrue.
5 MAS investigated the matter as there were suspicions that the report had been amended post-IPO and that Mr Lan and Mr Wee had provided false information to MAS. During investigations, Mr Lan and Mr Wee made several false statements, including affirming repeatedly that they had received the amended version of the report before the IPO.
6 On 1 July 2020, Mr Lan and Mr Wee were each charged with three counts of furnishing false information to the MAS investigators under section 162(3) of the SFA. On 9 March 2021, they pleaded guilty and were each convicted of one charge, with the remaining two charges taken into consideration during their sentencing. They were each fined $3,000.
7 Mr Lan and Mr Wee’s convictions for offences involving dishonesty, as well as their conduct during MAS’ inspection, have given MAS reason to believe that Mr Lan and Mr Wee have not and will not carry out regulated activities under the SFA honestly. The POs were therefore issued against Mr Lan and Mr Wee.
8 Ms Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime), MAS, said, “MAS expects representatives of issue managers to act with honesty and integrity at all times. In providing false information to MAS, the representatives had hindered MAS’ performance of its regulatory functions, which are aimed at protecting investors and the integrity of our capital markets. Such conduct will not be tolerated.”