Saturday, September 18, 2010

MAS fined Malaysian fund manager $500,000 for market manipulation

Monetary Authority of Singapore (MAS) fined a Malaysian fund management firm S$500,000 after being found guilty of market manipulation.

Pheim Asset Management and its founder Dr Tan Chong Koay were each ordered by the Singapore High Court to pay S$250,000, and legal costs, to the MAS, after being found to have committed market rigging offences.

According to the MAS, Pheim bought shares of United Envirotech within the final half an hour of trading on three consecutive days in 2004. These trades accounted for almost 90% of transactions for those shares over the period, causing their price to rise by 17%.

The High Court found that Dr Tan had bought the shares to inflate their price, enabling various Pheim funds to outperform their benchmarks.

Leo Mun Wai, assistant managing director in the capital markets group at the MAS said: “Fund managers should not engage in window dressing practices that would mislead investors as to the performance of securities and the funds under their management.

“As this case illustrates, MAS will not hesitate to pursue and take stern action against anyone who attempts to rig our capital markets, regardless of whether the perpetrator is in Singapore or overseas.”

About Pheim Fund Previous Accolades
-- Best of the Best 2008, CEO of the Year for Malaysia
-- Best Mixed Asset Balanced Islamic Fund for 5 years period, 2008
-- ASEAN Emerging Companies Growth Fund Ltd
-- Pheim Malaysia's Largest Account
-- Pheim Malaysia's Dana Makmur

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