The Securities Commission (SC) has revoked SJ Asset Management Sdn Bhd’s (SJAM) licence to undertake fund management activities with immediate effect.
In a statement yesterday, the SC said the move came after it found that SJAM had breached regulatory requirements in relation to the safeguarding of clients’ assets and that the company had engaged in “deceitful” and “improper” business practices.
The SC said it also found that SJAM had furnished false and misleading information and documents to the regulator, noting that it would be closely working with the police and regulatory counterparts in other countries as part of its investigations into the affairs of SJAM.
It said it had on July 27, 2010 petitioned to the High Court pursuant to Section 361 of the Capital Markets and Services Act 2007 (CMSA) for the winding-up of SJAM.
“The winding-up of SJAM will enable liquidators to effectively deal with the rights and entitlements of all creditors including the clients of SJAM,” the SC said.
According to the regulator, the liquidators would also determine an “appropriate basis” of returning the clients’ assets to the entitled clients.
The SC added that it had petitioned for provisional liquidators to be appointed pending the granting of the winding-up order by the High Court in order to protect the interests of all clients and stakeholders of SJAM.
Following this, it noted that the High Court had yesterday appointed Datuk Gan Ah Tee and Mok Chew Yin of BDO Governance Advisory Sdn Bhd as the provisional liquidators. The SC urged all affected parties to cooperate with the provisional liquidators to ensure an effective resolution of the issues confronting SJAM.
This article appeared in The Edge Financial Daily, July 29, 2010.
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