The Monetary Authority of Singapore (MAS) has taken civil penalty action against a former managing director at UBS AG, Indonesian Branch, for insider trading in the shares of PT Bank Danamon (Danamon) under the Securities and Futures Act (SFA).
Mr Vincent Rajiv Louis, who was also the head of its investment banking operations at UBS, bought one million Danamon shares on Mar 30, 2012, through his wife's bank account in Singapore.
He did so after possessing 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 April 2, 2012, and Mr Rajiv made a profit of IDR 1,739,821,337, or S$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 S$434,912 without court action.
Mr Lee Boon Ngiap, assistant managing director (Capital Markets) at 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."