Monday, December 19, 2011

Bursa Securities raps dealer's rep, imposes RM10,000 fine

KUALA LUMPUR (Dec 19): Bursa Malaysia Securities Bhd has rapped a dealer's representative Wahid Johan and fined him RM10,000 for his involvement in unethical activities.

The regulator said on Monday that Wahid was also restricted from trading on or through the stock market of the exchange for a period of 18 months

Bursa Securities said the unethical activities included making a false declaration resulting in wrongful payment of a client's monies to another client.

Wahid, who was a commissioned dealer's representative of MIMB Investment Bank Bhd had triggered and breached the provisions of the Rules of Bursa Securities.

It said Wahid had made a false declaration that monies deposited by another client into the trust account of the participating organisation belonged to his client, causing the participating organisation to pay the monies to his client who was not entitled to the monies.

'Wahid admitted that he had acted on the instructions of a third party when he declared that the monies deposited into the PO's trust account belonged to his client. This subsequently caused the participating organisation's other client to incur losses,' it said.

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