TWO former senior employees of UOB Kay Hian Private Limited (UOBKH) were charged on Wednesday for allegedly lying to the Monetary Authority of Singapore (MAS) in relation to reports on a then Catalist aspirant. Lan Kang Ming, 38, and Wee Toon Lee, 34, each face three charges of providing MAS with false information in October 2018 in relation to due diligence reports on an unidentified company applying to list on the Catalist board of the Singapore Exchange. MAS said in a media statement on Wednesday that it was performing an onsite inspection of UOBKH between June and August 2018, to assess the latter's controls, policies and procedures in relation to its role as an issue manager for Initial Public Offering (IPOs). During the examination, Lan and Wee were said to have provided different versions of a due diligence report relating to background checks on a company applying to be listed on the Catalist board of the Singapore Exchange. UOBKH had acted as the issue manager
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By Jonathan Kwok
24 December 2011
A unit of Asiasons WFG Financial - formerly known as Westcomb Financial - has lost its operating licence after failing to comply with certain financial benchmarks set by the Monetary Authority of Singapore (MAS).
Asiasons WFG Securities, as the unit is called, has ceased all business operations since losing the capital markets services licence it had held since 2003.
It is conducting an internal inquiry into how the lapses occurred.
The licence required Asiasons WFG Securities to maintain financial ratios above certain levels. It failed and could not restore the ratios even after a preset time period, leading to the loss of its licence.
Financial ratios compare certain numerical values from a company's books and are often used to evaluate the overall condition of the firm.
An announcement by Asiasons WFG Financial yesterday did not say what specific financial ratios its unit could not maintain.
The company stated that its unit, Asiasons WFG Securities, could be subject to regulatory sanctions if the MAS determines that it did not comply with the regulations or if it continued to engage in regulated activity after the licence lapsed.
The capital markets services licence allows the holder to provide financial advisory services, including managing, underwriting and placing out initial public offering (IPO) issues as well as advising on takeovers and mergers.
Asiasons WFG Financial has other businesses, such as those in private equity, fund management and pre-IPO consultancy.
The MAS regulatory sanctions do not apply to these operations, which continue to operate normally, said the company.
'Since 2010, the company has made selective acquisitions as well as tactical adjustments to the portfolios managed under its private equity, exempt fund management and pre-IPO consultancy businesses,' said Asiasons WFG Financial yesterday.
'(They) were key profit contributors of the company's consolidated profit after tax of $500,000 in financial year 2010.'
Asiasons WFG Financial also noted that Asiasons WFG Securities had been making losses so the stopping of its business 'is not expected to have a material adverse impact on the financial results or position' of the entire group.
Asiasons WFG Financial has been under a trading halt since Tuesday.
After yesterday's announcement, it requested for the halt to be lifted next Tuesday.
The stock has been very thinly traded. The last time a trade was done was in October, at 10 cents.
For the six months to June 30, Asiasons WFG Financial lost $1.45 million, compared with $1.43 million in the same period last year.
Last year, it made a net profit of $490,000, compared with a $2.87 million loss for 2009.
Westcomb Financial changed its name to Asiasons WFG Financial in late June last year, about a year after the company was taken over by Asiasons Capital, which is also listed in Singapore.
The company used to have a local stock broking arm but closed it in June 2009.
Westcomb Financial was set up in 2001 and it had helped many companies from Singapore, mainland China, Hong Kong, Malaysia and Australia list on the Singapore Exchange.
It had also underwritten numerous placements.
Westcomb Financial co-founder Choo Chee Kong was known as 'Mr. IPO' for his reputation in taking companies to capital markets.
Mr. Choo sold off his stake in the company a few years ago. In April 2009, Asiasons Capital bought a majority stake in it.
In its heyday, Westcomb Financial was one of the leading players in the IPO market. The company handled the largest number of IPOs in Singapore for four of the past 10 years.