KUALA LUMPUR (May 10): The Securities Commission Malaysia (SC) has brought charges against two companies and one individual for offences relating to unlicensed capital market activities.

The three charged at the Sessions Court here were Pixelvest Sdn Bhd, Infinity Trustee Bhd (ITB), and ITB’s former director Sophia Chin Wai Lan.

Pixelvest, represented by its director Dexter Ang Jen Chuen, was charged with one count of carrying on a fund management business without a licence. The company claimed trial before Sessions Court judge Norina Zainol Abidin.

“Fund management is a regulated activity that requires a licence by the SC under Schedule 2 of the CMSA. Any person carrying on this activity without a licence commits an offence under the CMSA, which is punishable with a maximum fine of RM10 million or an imprisonment for a term not exceeding 10 years, or both,” the SC said in a statement.

This came after the SC, on April 30, charged ITB with two counts of transferring funds amounting to RM116.29 million to Pixelvest, an unlicensed fund management company.

ITB’s representative Tan Boon Hoong also claimed trial to both charges before Sessions Court judge Datin Fadzlin Suraya Mohd Suah.

Chin was also charged with the same offence ITB allegedly committed.

“The charge against Chin is in relation to ITB’s act of transferring funds amounting to RM859,750.00 from ITB’s account to Pixelvest in furtherance of Pixelvest’s offence under section 58(1) of the CMSA. Sophia Chin was deemed to have committed the offence by virtue of her position as director of ITB at the material time,” said the SC in a statement.

Section 58(1) of the CMSA states that no one should carry on a business in any regulated activity or hold himself out as carrying on such a business unless he is the holder of a Capital Markets Services Licence, or is a registered person.  

The offences committed by Pixelvest and Chin took place in Petaling Jaya, Selangor, between December 2020 and October 2022.

The SC had previously charged Chin, ITB’s former chief executive officer Syaiful Riezal, as well as Ang, for carrying on unlicensed capital market activities, and for receiving proceeds of unlawful activities under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

“The SC views unlicensed activities seriously and remains committed to investor protection by continuous enforcement actions against those who contravene the law. When evaluating investment offers, investors are advised by the SC to exercise caution,” the SC said.

It also encouraged the public to use the SC Investment Checker on its website, to verify if an individual and/or entity is authorised by the SC to offer, promote or sell any capital market products and services in Malaysia.

https://www.theedgemarkets.com/node/711129