On 3 December 2024, a fund acquired newly issued VGI shares, causing the fund’s shareholding in VGI to increase and cross the 5 percent threshold of the total voting rights of the business. The SEC found that Mr. Yim Leak was the UBO of such fund. Accordingly, he was required to report the acquisition of such shares to the SEC on Form 246-2 within three business days from the date of acquisition (by 9 December 2024). However, Mr. Yim Leak failed to submit such report to the SEC within the specified period, in violation of Section 246 and subject to penalties under Section 298 of the SEA. In addition, as Mr. Yim Leak has not yet submitted Form 246-2 to the SEC, it remains unclear when he will submit such Form 246-2. The SEC has therefore filed a criminal complaint against Mr. Yim Leak with the ECD for consideration of further legal proceedings.

Following the criminal complaint filed by the SEC, the criminal enforcement process will proceed with investigation by the inquiry official, prosecution by the public prosecutor, and adjudication by the court of justice, respectively. In this regard, the SEC will monitor the progress of the legal proceedings and fully cooperate with relevant agencies to support legal enforcement under the SEA after the criminal complaint has been filed.