Monetary Authority of Singapore imposes SGD 50,000 civil penalty on Tan Tee Beng for insider trading in Tee International and Tee Land shares

The Monetary Authority of Singapore (MAS) has imposed a civil penalty of SGD 50,000 on Tan Tee Beng for insider trading in shares of Tee International Limited and Tee Land Limited, following a joint investigation with the Commercial Affairs Department of the Singapore Police Force. Tan admitted contravening sections 219(2)(a) and 219(2)(b) of the Securities and Futures Act and paid the penalty without court action, and also gave a voluntary undertaking not to be a company director or be involved in the management of a company for two years. While head of margin at RHB Securities Singapore Pte Ltd, Tan learned in the course of his work of Tee International’s impending sale of its entire stake in Tee Land to Amcorp Supreme Pte Ltd at SGD 0.179 per share, a 9.1% premium to the prior close, before the information became public. He procured another individual to buy Tee International and Tee Land shares on 16 October 2019 and personally bought three million Tee International shares on 11 and 13 December 2019, ahead of the transaction’s public announcement on 13 January 2020. MAS noted that civil penalty actions are distinct from criminal proceedings and that, under section 232 of the Securities and Futures Act, civil penalties for Part 12 contraventions can be agreed up to three times the profit gained or loss avoided, subject to a minimum of SGD 50,000 for individuals and SGD 100,000 for corporations.