Enforcement action for credible deterrence

PETALING JAYA: The SC took criminal action against 17 individuals, filed civil enforcement action against two individuals and imposed 37 administrative sanctions and 177 infringement notices in 2016.
A total sum of RM1.79 million disgorged through civil enforcement action was restituted to 423 investors.
“Our success in the case involving the manipulation of Repco shares saw the heaviest punishment meted out by the courts for market manipulation since the SC’s inception,” SC said in its annual report.
Prosecutions for insider trading continued to form the largest proportion of the total number of individuals charged, making up 10 of the total 17 individuals.
The SC charged four individuals under section 317A of the Capital Markets and Services Act 2007 (CMSA) for causing wrongful loss to a public-listed company (PLC). The SC also applied for an injuction to prevent dissipation of a PLC’s assets arising from a breach of section 317A of the CMSA.
“The range of actions taken for breaches of securities laws demonstrates the wide range of enforcement tools available to the SC to address these breaches. Underscoring these efforts is our mandate to protect investors and maintain market integrity,” SC said.
It added that the increase in the number of administrative actions taken this year underscored the growing role of non-court based actions complementing its powers to prosecute.