Legal
Singapore Regulator Slaps Civil Penalty On Former Broking Agent, Two-Year Ban
The MAS has acted against a remisier for entering a false sell order to create a false indicative opening price on an ETF.
Singapore’s financial regulator and defacto central bank has
imposed a civil penalty of S$157,000 ($114,530), without court
action, against a former remisier – aka stockbroker’s agent – for
UOB Kay Hian Private Limited, for entering a false sell order to
create a false indicative opening price for an exchange traded
fund.
The Monetary
Authority of Singapore acted against the man for false
trading under the Securities and Futures Act.
On 20 October 2011, Tan Hua Ann, then a remisier with UOB Kay
Hian Private Limited, entered a false sell order to create a
false appearance in the indicative opening price for an
exchange-traded fund, Lyxor UCITS ETF MSCI AC Asia Ex Japan
(LA10), during the pre-open phase before the start of the
Singapore Exchange’s trading day. He made personal gains of
S$62,723 from the false trading, MAS said in a statement.
The regulator said Tan had cooperated fully with MAS during the
investigation. He admitted to contravening section 197(1)(b) of
the SFA through his action. He has paid MAS a civil penalty
of S$157,000, without court action.
MAS has also banned Tan from conducting business in any regulated
activity under the SFA or acting as a representative in respect
of any regulated activity under the SFA, and banned him from
taking part in the management of any holder of a capital market
services licence or any person exempt from holding a capital
market services licence under section 99(1) of the SFA in
Singapore, for a period of two years.
“The pre-open phase was introduced to facilitate orderly price
discovery before the market opening. Mr Tan, an experienced
remisier who understood the pre-open phase, had sought to create
a false impression in the indicative price of an ETF during the
pre-open phase for personal gain,” Lee Boon Ngiap, assistant
managing director, capital markets, at MAS, said.
The matter was referred to MAS by Singapore Exchange Securities
Trading Limited.