MAS bans ex-OCBC employee for unauthorised trading

SINGAPORE — The Monetary Authority of Singapore (MAS) has issued two prohibition orders against a former trading representative of OCBC Securities, Prem Hirubalan, for unauthorised share trading and misappropriation of customers’ monies, said the financial regulator yesterday.

Under the prohibition orders, which took effect yesterday, Hirubalan is banned for a period of seven years from:

(i) Performing any regulated activity, and taking part in the management, acting as a director or becoming a substantial shareholder of any capital market services firm under the Securities and Futures Act (SFA); and

(ii) Providing any financial advisory services, and taking part in the management, acting as a director or becoming a substantial shareholder of any financial advisory firm under the Financial Advisers Act (FAA).

The prohibition orders against Hirubalan were issued by the MAS pursuant to section 101A of the SFA and section 59 of the FAA.

Hirubalan was a representative of OCBC Securities from May 2010 to May 2011, during which he conducted unauthorised share trades in the trading accounts of three customers and misappropriated a sum of about S$81,000 from one of these customers, said the MAS.

The offences were discovered by OCBC Securities after one of the customers filed a report, showed court documents. On June 24 last year, Hirubalan was convicted of charges under Section 201(b) of the SFA and Section 406 of the Penal Code for these offences. On Aug 8 last year, he was sentenced to 10 months’ in jail.

Under Section 201(b) of the SFA, no person shall, directly or indirectly, in connection with the subscription, purchase or sale of any securities engage in any act, practice or course of business which operates as a fraud or deception, or is likely to operate as a fraud or deception, upon any person. Under Section 406 of the Penal Code, whoever commits criminal breach of trust shall be punished with imprisonment for a term that may extend to seven years, or with a fine, or both.

Mr Lee Boon Ngiap, assistant managing director (Capital Markets), MAS, said: “MAS expects all finance professionals to act honestly and with integrity. To protect consumers from fraudulent and dishonest behaviour by representatives, MAS will not hesitate to bar any individuals who do not meet fit and proper criteria from the financial industry.”