Bursa Malaysia Securities Berhad has publicly reprimanded, fined, and ordered to strike off two Dealer’s Representatives for breaches of the Rules of Bursa Malaysia Securities and directives in relation to improper use of clients’ trade information to carry out front-running activities and unlawful trading in a client’s account.
Abdul Karim bin Yasin from CIMB and Sobri bin Ahmad from HLIBB had committed the offensewhile on duty, Bursa Malaysia Securities said it views seriously all breaches that impinge on the integrity and professional etiquette of DRs and Registered Persons and which compromise client’s protection as such misconducts may adversely affect and damage market integrity
Karim was a Salaried DR of CIMB Investment Bank Berhad at its Principal Office and thereafter CGS-CIMB Securities Sdn Bhd at its Principal Office and he handled the dealing activities for the institutional clients of CIMB-IB/CGS-CIMB and Sobri was a Commissioned DR of Hong Leong Investment Bank Berhad at its Bukit Damansara Branch Office and had acted based on the instructions of Karim.
The investigation found that whilst Karim was undertaking dealing activities for some of the institutional clients, Karim had abused or improperly used the trade information (i.e. buy and/or sell instructions including timing) of some institutional clients of CIMBIB/CGS-CIMB (Trade Information) and gave instructions to Srobri to buy/sell in the same counters traded by Karim for the institutional clients (Relevant Common Counters) using a third party’s (i.e. Client A) account at HLIBB. This had enabled Karim to carry out front-running activities (Front-running activities) resulting in profitable intraday trades for Karim’s benefit (Abuse of Clients’ Trade Information). Karim was privy to the Trade Information as he handled the dealing activities of these institutional clients whereas Client A is Sobri’s client and brother.
Bursa Malaysia Securities said it will not hesitate to take appropriate actions against anyone who engages in such misconduct or fails to carry out their duties honestly, with the utmost integrity and act in the best interest of the client, and compromises the confidentiality of clients’ information, including striking off a Registered Person from the Register and imposing a fine commensurate with the severity of the breach.
His misconduct showed that he had acted dishonestly for his own interest and his ill-intention to advance his own financial gain.
