KUALA LUMPUR (April 12): Former head of equity research at CIMB Investment Bank Bhd Terence Wong @ Huang Thar-Rearn has entered into a settlement with the Securities Commission Malaysia (SC) amounting to RM573,150 for insider trading of 800,000 Malaysian Airline System Bhd shares in July 2011.
According to the SC website, Wong had on April 1, 2019 agreed without admission or denial of liability to settle a claim that the regulator was proposing to institute against him for acquiring the shares whilst in possession of inside information contrary to Section 188(2) of the Capital Markets and Services Act 2007 (CMSA).
The SC said the shares acquisition were done through the account of one Tan Ah Loy @ Tan May Ling.
"The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws," the SC said.
"The amount disgorged from Wong is equivalent to three times the difference between the price at which the shares were acquired and the price at which the shares would have been likely to have been acquired at the time of the acquisition, if the information had been generally available," it explained.
SC added that the monies recovered will be applied in accordance with Section 201(7) of the CMSA.