| Q |
Someone contacted me over the telephone and recommended me a share counter listed on an overseas exchange. He told me on a confidential basis that the share price is likely to appreciate significantly as the company will be making a "big" business transaction soon. I don't know the person who called me and I have never heard of this counter previously. Is it safe for me to buy the share? |
| A |
You should tread with caution when thinking of buying unknown shares recommended by unknown callers. There is no good reason why someone in possession of "secret" good news about a counter would want to share it with you. Many of these "tips" tend to be scams operated by persons located overseas. The shares sold to unsuspecting buyers are either non-existent or extremely illiquid. If you fall prey to such a scam, chances of recovering your money are low as the money will most likely be transferred out of Singapore before you discover the scam.
Please see our Crime Prevention section on boiler room or cold call scams for more information.
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| Q |
There is a civil penalty regime as well as a criminal penalty regime for securities market conduct offences in Singapore. How do the authorities decide on whether an offence should be dealt with on the civil regime or the criminal regime? |
A |
Monetary Authority of Singapore administers the civil penalty regime for market conduct offences while CAD handles the criminal enforcement regime. We have an agreed set of protocols and criteria with Monetary Authority of Singapore for assessing market misconduct complaints. Broadly speaking, the agreed criteria provides for the tracking of cases based on the nature and severity of the alleged misconduct. We review the criteria on a regular basis to ensure that it stays relevant and updated. We are unable to provide further details of the decision criteria as such information could give potential offenders clear markers on how to avoid liability.
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