Singapore’s financial markets regulator has banned a former relationship manager for three years and was paid a penalty of S$50,000 ($40,000) by him for insider trading.
Koh Huat-Heng admitted to contravening the Securities and Futures Act while working at the affluent-banking unit of Malaysia's Maybank.
The civil penalty does not constitute criminal action and did not attract criminal sanction. It stems from events that began on June 18 last year, when Koh bought 140,000 shares in Sin Heng Machinery, a company listed on the Singapore Exchange.
Koh made the purchase while in possession of non-public and price-sensitive information concerning Sin Heng’s intention to undertake a rights issue.
On June 26, 2013, Sin Heng announced that it intended to undertake a rights issue of up to 114.8 million new ordinary shares at an issue price of S$0.16.
It said that one rights share would be available for every four existing ordinary shares held by company shareholders.
The Monetary Authority of Singapore issued an order under the Financial Advisers Act prohibiting Koh from providing any financial advisory service, taking part in the management of, acting as a director of or becoming a substantial shareholder of a licensed financial adviser or exempt financial adviser.