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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Fund managers may lose confidence in local stocks with frequent disruptions
Yasmine Yahya
04 December 2014
Singapore Exchange (SGX) chief executive Magnus Bocker came out swinging at an hour- long press conference yesterday, explaining in painstaking detail what happened in the bourse operator’s latest “incident”, what it plans to do next, addressing whether he would step down from his job and apologising for good measure.
It was a marked change from the last hastily convened press conference held by the SGX to explain a three-hour market disruption last month. Mr Bocker did not even show up then.
The public relations offensive made clear that the SGX is keenly aware yesterday’s market opening delay was the bourse operator’s third strike and some investors feel Mr Bocker should be out.
Aside from last month’s disruption, the SGX had to suspend derivatives trading for over two hours on April 1 due to a hardware fault.
Yesterday, Mr Bocker put his game face on. While acknowledging an unfortunate run of technical glitches and market disruptions this year, he managed to put a positive spin on things.
The way that the SGX handled yesterday’s situation is a signal that it is willing to take a hit to support retail investors and this should thus strengthen long-term confidence and trust in the SGX, he said.
Would Mr Bocker consider resigning, given public furore over the series of market disruptions?
“I’m not giving up,” was the stoic reply. “I’ve been working with exchanges for nearly 30 years and this is not the first time I’ve gone through this. We will come through.”
Is his contract likely to be renewed next year?
“This is something between me and my board... I really appreciate working with the SGX. We have a phenomenal journey for this company, which I think is one of the most interesting exchange companies in the world.”
Bold words for a firm in the midst of its most heated public relations crisis in years.
But it will take more than words to calm angry investors, who took to online forums yesterday to vent their frustration, calling for Mr Bocker’s resignation - or for his bonus and pay to be slashed at the least - and urging regulators to penalise the SGX.
Listed companies and fund managers, too, are losing confidence in the Singapore market, noted NRA Capital executive chairman Kevin Scully.
“I spoke to the chief financial officer of a listed firm and he said he was not even told about the opening delay ahead of time. It makes you question whether they have a proper disaster recovery system in place,” he said.
The SGX issued a public statement about the delay on its website at 4am yesterday morning.
International fund managers who see such frequent disruptions here may be less confident in investing in local stocks too, and might demand cheaper valuations in the face of that risk.
Call it bad luck or mismanagement, but the SGX’s woes have far-reaching consequences that affect not only local investors’ confidence in the market but also Singapore’s reputation as a regional financial hub.
The SGX has promised full reviews and investigations to prevent further disruptions. Regulators have said they will take action “if necessary”.
The market is certainly waiting to see what will happen next, beyond the offering of promises and threats.