Latest Development in Capital Market Regulations – Insider Practices

Laws & Regulations

16
Mar 2022

10:00 am - 4:45 pm

SIDC LAMS

Speakers : Dr. Syed Adam Alhabshi (Moderator) | Lee Shih | Rejina Rahim | Mohamad Azhar Mohamed Hamidi | Kok Yien Fui

Registration closing date is 3 business days before the programme date or when all seats are fully taken.
HRD Corp
Claimable
TBC:
10 CPE

MYR 650 *Fee is not inclusive of 6% SST

HRDC-Claimable
HRDC-TrainingProvider

HRD Corp Registered Course/Programme No.: 10001163565

Latest Development in Capital Market Regulations - Insider Practices

The Securities Commission Malaysia Annual Report 2020 highlighted that there were 34 cases relating to capital market offence, of which 50% of the cases were related to insider trading. It was also noted that in the same year, civil actions and regulatory settlements have been imposed on individuals involved in insider trading. The severity of the incidences was also notable through the fines and regulatory settlements which have fetched to a soaring amount from hundreds of thousands ringgit up to RM5 million.

In order to safeguard the interest of the capital market players, strong enforcement of the regulations and continuous improvement of the laws relating to insider trading is crucial. The Securities Commission Malaysia (SC) in April 2021 has issued Guidance Note on Controls by Fund Management Companies in Managing Material Non-Public Information (MNPI) with the objective to assist Fund Management Companies (FMCs) to establish and enhance sound internal controls in managing material non-public information (MNPI). In addition to that, with the rise of convictions related to insider trading, it is important and timely that the capital market participants are well versed in the activities as well as the rules and regulations pertinent to insider trading.

This programme will focus on the laws governing the securities offence in relation to insider trading and MNPI. Discussions will also delve into what is considered to be ‘material’ and ‘non-public’ as well as what employees should know in relation to managing them in accordance with the relevant laws and regulations.

Programme Objective

This programme will discuss in depth the components of insider trading as a securities offence, the severity and implications of this offence, particularly if it is MNPI and the appropriate controls, governance structures, policies and procedures to mitigate such incidences as set out in the Malaysian capital market laws.

 

Mode

Live Webinar

 

Target Audience

Individual

  • CMSRLs, Risk Managers, Compliance Officers, Accountants, Finance Executives, University Students and Public.

Institutions

  • Asset management companies, fund management companies, investment banks, stockbroking companies, commercial banks and public listed companies

Learning Outcomes

Upon completion of this  programme, the participants will be able to:

  • Describe the latest development in relations to insider trading laws and its implications
  • Describe the essential components that constitute the securities offence of insider trading and its implications
  • Discuss the relevant cases arising from insider trading activities
  • Relate the regulatory expectations and best practices in mitigating the risks involving insider trading
10.00 am Development of Insider Trading Laws in the Malaysian Capital Market

  • Who is considered as an ‘insider’ – S188 Capital Markets and Services Act 2007 (CMSA)
  • What constitutes Material Non-public Information (MNPI)
    • What is defined as ‘an information’? – S183 CMSA
    • What information is considered as ‘generally available’? – S184 CMSA
    • Material effect on price or value of securities – S185 CMSA
    • Trading in securities – S186 CMSA
    • Reference to ‘procure’ – S187 CMSA
  • Implications and penalties – S188 and S201 of criminal and civil actions of CMSA

Panellist: Lee Shih, Managing Partner, Lim Chee Wee Partnership

11.00 am Screen Break
11.15 am Guidance Note on Controls By Fund Management Companies In Managing MNPI

  • What employees should know in handling ‘Material’ and ‘Non-Public’ information
  • Areas of vulnerabilities – Examples of MNPI
    • Meeting protocols: Meeting during closed period and handling of MNPI
    • Physical and functional separation of departments
    • Trading restrictions of securities: Restricted list

Panellist: Rejina Rahim, External Advisor, Nomura Asset Management Malaysia

12.15 am Lunch Break
2.00 pm What Can We Learn from Convicted Cases?

  • Analysis of criminal sanctions and regulatory settlements
    • Lim Chin Chin case
    • Sreesanthan A/L Eliathamby case
    • Foong Choong Heng case
    • Fang Siew Yee case
    • Lee Swee Eng case
  • Has the number of insider trading cases reduced over the years?

Panellist: Lee Shih, Managing Partner, Lim Chee Wee Partnership

3.30 pm Screen Break
3.45 pm Regulatory Expectations in Prevention of Insider Trading

  • Enforcement and regulatory strategy going forward
  • Challenges faced in securing convictions for insider trading

Best Practices, Controls and the Culture of Compliance

  • Governance – Responsibilities and reporting procedures
  • Policies and procedures – Whistleblowing channel, Chinese Wall policy
  • Internal controls effectiveness and efficiency
  • Incorporation of MNPI risk into risk assessment framework
  • Periodic review of MNPI risks
    • Monitoring and Surveillance – Independence and record keeping
    • Personal account dealing – Policies to deter MNPI misuse
    • Mosaic theory – Documentation of research materials
    • Inculcating the culture of compliance
  • The role of public and professional advisors

Panellist:

  1. Mohamad Azhar Mohamed Hamidi, Executive Vice President and Head of Market Surveillance, Bursa Malaysia Berhad
  2. Kok Yien Fui, Regional Head, Wholesale Banking Compliance, CIMB Bank Berhad
4.45 pm End of Programme

About the Speaker

Dr. Syed Adam Alhabshi (Moderator)

Partner
Shook Lin & Bok

Lee Shih

Managing Partner
Lim Chee Wee Partnership

Rejina Rahim

External Advisor
Nomura Asset Management Malaysia

Mohamad Azhar Mohamed Hamidi

Executive Vice President and Head of Market Surveillance
Bursa Malaysia Berhad

Kok Yien Fui

Regional Head, Wholesale Banking Compliance
CIMB Bank Berhad

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*The SIDC reserves the right to amend the programme as deemed appropriate without prior notice

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