MAS slaps former UOB Kay Hian remisier with prohibition order for false trading

Tan Hua Ann was fined $157,000.

Almost four years ago, Tan entered a false sell order to create a false appearance in the indicative opening price for an ETF. Now, he is about to suffer the consequences.

According to a media release by MAS, the Exchange-Traded Fund was Lyxor UCITS ETF MSCI AC Asia Ex Japan (LA10). Tan entered the false sell order during the pre-open phase before the start of the Singapore Exchange’s trading day. He made personal gains of S$62,723 from the false trading.

Tan admitted to contravening section 197(1)(b) of the SFA through his action. He has paid MAS a civil penalty of S$157,000, without court action. MAS has also issued a prohibition order to Mr Tan under section 101A(2)(a) of the SFA, prohibiting him from (i) conducting business in any regulated activity under the SFA or acting as a representative in respect of any regulated activity under the SFA; and (ii) taking part in the management of any holder of a capital market services licence or any person exempt from holding a capital market services licence under section 99(1) of the SFA in Singapore, for a period of two years.

Mr Lee Boon Ngiap, Assistant Managing Director (Capital Markets), MAS, says, “The pre-open phase was introduced to facilitate orderly price discovery before the market opening. Mr Tan, an experienced remisier who understood the pre-open phase, had sought to create a false impression in the indicative price of an ETF during the pre-open phase for personal gain. MAS will take firm action against any form of false trading or manipulation as such actions affect investors’ confidence in the market. When a licensed person knowingly commits such misconduct, MAS will not hesitate to prohibit such person from carrying out regulated activities for an appropriate period to deter such conduct and protect the investing public.”