In Hong Kong The Securities and Futures Commission (SFC) has banned Mr Masashi Yonezawa, a former trader at Nomura International (Hong Kong) Limited (Nomura Hong Kong), from re-entering the industry for 30 months.
The disciplinary action follows an SFC investigation, which found that Yonezawa, a trader on Nomura Hong Kong’s Delta One trading desk, made false entries in Nomura Hong Kong’s risk management system on three separate days between March and May 2013 to conceal the real risk exposure of his trades.
Yonezawa, who was on secondment from Nomura Securities Co., Ltd in Japan at the material time, also made misrepresentations to his supervisors and the management of Nomura Hong Kong when he explained the trading losses resulting from his trades to them.
As a result, Yonezawa’s conduct prevented Nomura Hong Kong from effectively monitoring the trading activities of its Delta One trading desk.
In deciding the disciplinary action, the SFC has taken into account all relevant circumstances, including Yonezawa’s conduct was deliberate and dishonest, and his remorsefulness for the misconduct.
Meanwhile in Singapore The Monetary Authority of Singapore (MAS) has taken civil penalty action against Mr Vincent Rajiv Louis for insider trading in the shares of PT Bank Danamon (Danamon) under the Securities and Futures Act (SFA).
Mr Rajiv was a Managing Director at UBS AG, Indonesian Branch, and was the Head of its Investment Banking operations when the contravention occurred.
On 30 March 2012, Mr Rajiv, who resides in Indonesia, bought one million Danamon shares through his wife’s bank account in Singapore after he possessed price-sensitive and non-public information on a proposed acquisition of Danamon by DBS Bank Limited (DBS) in the course of his work. Danamon is listed on the Jakarta Stock Exchange.
DBS subsequently announced the proposed acquisition on 2 April 2012 and Mr Rajiv made a profit of IDR 1,739,821,337, or $173,965 from his insider trades.
Mr Rajiv has admitted to contravening Section 218(2)(a) of the SFA and has paid MAS a civil penalty of $434,912 without court action.
Mr Lee Boon Ngiap, Assistant Managing Director (Capital Markets), MAS, said: “The civil penalty action against Mr Rajiv, who resides in Indonesia, is significant. It reflects MAS’ firm resolve to act against anyone who contravenes our market conduct laws, whether he is based in Singapore or overseas.”