The Monetary Authority of Singapore has shown it will take a tough stance against those who carry out unauthorised trades.

Singapore's financial watchdog has ordered a former married couple to pay penalties totaling more than $80,000 after an investigation revealed they executed unauthorised share trades.

Earlier this week, the Monetary Authority of Singapore said it had obtained a civil penalty judgment against Wang Boon Heng and Foo Jee Chin for unauthorised share trading.

In December last year, a court ruled that Wang and Foo had breached section 201(b) of the Securities and Futures Act. This section states: “No person shall, directly or indirectly…engage in any act, practice or course of business which operates as a fraud or deception.” 

Earlier this week, the court ordered Wang and Foo to pay civil penalties of S$75,000 ($52,811) and S$50,000 respectively.

“This civil penalty action reflects MAS’ firm stance against unauthorised share trading, which is a deception against broking firms that are unaware of the beneficial owner behind the trades,” said Lee Boon Ngiap, assisting managing director of MAS. 

“Such behaviours carry regulatory risks as perpetrators of insider trading and market manipulation often hide behind nominee accounts,” he added. 

In 2007, when Wang was an undischarged bankrupt, he carried out share trading for his own benefit in the accounts of his ex-wife, Foo, with DMG & Partners and UOB Kay Hian and in the accounts of another person. This person was not named, however. 

According to the MAS, both DMG and UOBKH did not know the trades benefited Wang, and not the actual account holders. The firms did not authorise Wang to trade in their accounts. Because he executed the trades without authorisation, Wang “intentionally deceived” DMG and UOBKH, the MAS said. The financial watchdog also laid the same accusation on Foo, as she allowed Wang to trade in her accounts without obtaining authorisation.

In addition to the civil penalty action, MAS also issued a warning letter to the second account holder for contravening section 201(b) of the SFA for allowing Wang to trade in their accounts for his benefit.