The Monetary Authority of Singapore (MAS) said today in a statement that they had taken civil penalty enforcement action against a man for contravening the Securities and Futures Act (SFA).
According to MAS, Lau Kee Swan had knowingly opened securities trading accounts with various brokerage houses for the purpose of trading on behalf of a third party.
He also allegedly conducted trades in those accounts for the benefit of third parties.
His dealings with these brokerage houses had led them to believe that the accounts were opened and operated for himself.
MAS said that Lau has admitted to contravening the Act and will pay a civil penalty of $50,000 to MAS without court action.
He also cooperated fully in the course of the investigations, wrote MAS.
“Account holders should not allow their accounts to be operated for the benefit of third parties, while giving the brokerage house the false impression that the trades belong to the account holders.
“This practice undermines the integrity of our capital markets and prevent them from functioning in a fair, orderly and transparent manner,” said Mr Lee Chuan Teck, assistant managing director for Capital Markets at MAS.
Under the SFA, no person shall, directly or indirectly, in connection with the subscription, purchase or sale of any securities engage in any act, practice or course of business which operates as a fraud or deception, or is likely to operate as a fraud or deception, upon any person.
A civil penalty action is not a criminal action and does not attract criminal sanctions.
First you got to prove they had communications, then there is a benefit transferred to the third party, if this is US, everyone will laugh at MAS for such a rule, was there fraud and deception?
– Contributed by Oogle