RHB Investment Bank (RHB IB) will enhance its due diligence processes after being reprimanded and fined by Bursa Malaysia Securities Bhd (Bursa Malaysia) yesterday (Sept 14) for breaching ACE Market Listing Requirements, including failing to conduct proper due diligence.
Its managing director and chief executive officer, Ganesh Sabaratnam, said the bank will exercise a higher degree of due diligence and compliance with regulatory requirements in carrying out its responsibilities.
“We take this matter very seriously and have reviewed and enhanced our due diligence processes and procedures, including the review process of our clients, both quantitatively and qualitatively, to be more robust,” he said in a statement today.
Ganesh also mentioned that RHB IB is working with an external advisor to ensure the bank continues to align with due diligence processes and procedures to market best practices.
“The enhancements to the due diligence processes and procedures, coupled with a strong commitment and cooperation from our clients and all other parties involved, will further raise the quality and standards of due diligence,” he added.
In a statement yesterday, Bursa Malaysia said it reprimanded and imposed a fine of RM350,000 on RHBIB for breaching ACE Market Listing Requirements.
RHB IB is the sponsor and principal adviser for an applicant seeking a listing on the ACE Market, and it failed to conduct proper due diligence to ensure all material information was accurately disclosed.
For the second breach, it failed to immediately notify the exchange of material developments concerning the applicant’s business, operations, future plans, and prospects after the initial submission of the proposed listing.
