Securities Commission Act 1993 · Updated to 1 Mar 2016 · Part III · Finance
31Z. Sanctions
Feedback & supportWhere any person contravenes or fails to comply with, observe, enforce or give effect to any of the following, that person has committed a breach—
any provisions of this Part;
any conditions imposed under this Part; or
any written notice or guidelines imposed or issued by the Commission.
Where a person has committed a breach under subsection (1), the Audit Oversight Board may take one or more of the following actions:
Audit Oversight Board
“Audit Oversight Board” means the Audit Oversight Board established under section 31C;
direct the person concerned to comply with the provisions of this Part or any conditions imposed under this Part, or any written notice or guidelines issued by the Commission;
reprimand the person concerned;
require the person concerned to take such steps, as the
Audit Oversight Board may direct, to remedy the breach;
require relevant professional education to be undertaken by the person concerned;
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assign a reviewer to oversee an audit that is undertaken by the person concerned;
prohibit the person concerned from accepting any public interest entity or schedule fund as its client or preparing reports in relation to financial information of any public interest entity or schedule fund, as may be required under the securities laws or guidelines issued by the
Commission, for a period not exceeding twelve months;
prohibit the person concerned from auditing financial statements or preparing reports in relation to financial information of a public interest entity or schedule fund, as may be required under the securities laws or guidelines issued by the Commission, for a period not exceeding twelve months or permanently; and
impose a penalty not exceeding five hundred thousand ringgit on the person concerned.
Notwithstanding subsection (2), the Audit Oversight Board may require any person who has commited a breach under subsection
to give a written undertaking that such person shall comply with, observe, enforce or give effect to—
the provision of this Part;
any conditions imposed under this Part; or
any written notice or gudelines imposed or issued by the
Commission.
Subsection (3) shall not apply to any person who has committed a breach under subsection (1) and has been prohibited from auditing financial statements of a public interest entity or schedule fund permanently pursuant to paragraph 2(g).
public interest entity
“public interest entity” means the entity specified in Part 1 of
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Commission
“Commission” means the Securities Commission Malaysia established under section 3;
The Audit Oversight Board shall not take any action under subsection (2) without giving the person concerned an opportunity to be heard.
Where the person concerned fails to pay the penalty imposed under paragraph 2(h), such penalty may be sued for and recovered as a debt due to the Commission.
Any monies obtained from the penalty imposed under paragraph 2(h), shall be utilised to plan and implement capacity building programmes relating to the accounting and auditing profession.
Where on an application by the Commission, it appears to the court that the person who has committed a breach under subsection
Court
“Court” means— Securities Commission Malaysia 15 (a) a High Court established under Article 121 of the Federal Constitution or a Judge of the High Court; or (b) a Sessions Court or a Magistrate’s Court established under section 3 of the Subordinate Courts Act 1948 or a Sessions Court Judge or a Magistrate;
has failed to comply with any action taken by the Audit Oversight
Board under subsection (2) or (3), the court may make an order directing such person to comply with such direction, requirement or terms of undertaking issued by the Audit Oversight Board.
Nothing in this section shall preclude the Commssion or any other relevant authorites from taking any other action which they may take under their respective written laws or by-laws.