Insider trader from Morgan Stanley Asia ordered to compensate investors US$3.08m in unprecedented ruling

December 20, 2013 Leave a comment

Updated: Friday December 13, 2013 MYT 7:52:47 AM

Insider trader ordered to compensate investors in unprecedented ruling

SINGAPORE: A former Morgan Stanley banker convicted of insider trading will have to pay more than 290 investors a total HK$23.9mil (US$3.08mil) they lost out on, a Hong Kong court ordered, in an unprecedented legal ruling. Du Jun, a former banker for Morgan Stanley Asia Ltd, was ordered by Hong Kong’s Court of First Instance yesterday to make the payment for using inside information when he traded shares in CITIC Resources Holdings Ltd in 2007. The case marks the first time in Hong Kong that the Securities and Futures Commission has successfully managed to win a court order forcing an individual insider-trader to pay investors money they lost out on as a result of trading with him or her. It also contrasts with the approach taken by most other regulators, including those in the United States and Britain, which tend to levy fines for insider trading that go into government coffers rather than returning money to investors. — Reuters

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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