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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The response focuses on two proposed regulatory changes - the Minimum Trading Price of 20 cents and the Enforcement Frameworks that MAS and SGX first proposed in February this year.
15 October 2014
The newly-formed Small and Middle Capitalisation Companies Association (SMCCA) has made its first move to champion the interests of its members.
On Wednesday (Oct 15), it provided the Singapore Exchange (SGX) with a written response on the proposed regulatory changes amid the public consultation period.
The response focuses on two of the proposed regulatory changes. They are the Minimum Trading Price (MTP) of 20 cents and the Enforcement Frameworks that the Monetary Authority of Singapore (MAS) and SGX first proposed in February this year.
‘SHARE CONSOLIDATION WILL HAVE NEGATIVE IMPACT’
Under the proposed changes, the MTP of 20 cents is to apply to mainboard-listed companies. If the company’s share price falls below the threshold, it could be placed under the watch list and even delisted.
SMCCA said it has asked the MAS/SGX to not implement the MTP of 20 cents. It said that it is necessary for SGX to explain why it believes that having an MTP will materially increase liquidity.
SMCCA added that its “research shows that share consolidation will have a negative impact on trading liquidity as well as price. It would also create unnecessary costs.”
‘NO CLEAR & LOGICAL PRECEDENCE’ IN WIDENING SGX’S POWERS
Meanwhile in the proposed changes to the Enforcement Frameworks, this will see the creation of a Listing Advisory Committee, a Listing Discipline Committee and a Listing Appeals Committee. There is also a widening of SGX’s powers to fine listed companies up to S$250,000 for each breach of listing or trading rules and up to S$1 million in total for all breaches. SGX is also asking for full investigative powers towards issuers.
In its response, SMCCA said it has asked MAS/SGX to not implement the Enforcement Framework in its current form. SMCCA argued that there is no legislative ground for SGX to regulate issuers or listed companies.
It added that “there is also no clear and logical precedence in widening SGX’s current ability to fine sponsors S$250,000 for Catalist rule breaches to fining issuers similarly. This is because the Catalist market is a sponsor-regulated market.”
Mr Tan Choon Wee, president of SMCCA said: “SMCCA would be glad to sit down with SGX and understand their thinking behind some of these proposed regulatory changes. We do not agree with some of these and we believe that there are better measures to achieve some of the outcomes that they mentioned in their paper.”
SGX’s public consultation phase for the proposed regulatory changes ends on Thursday.
- CNA/dl