Comply or else: MAS shows teeth as it nixes fund manager’s status, says global law firm

Financial institutions, licensed or exempt, should comply.

The central bank sent a nudge to the city-state’s financial firms to comply with all of its relevant regulatory obligations as it recently withdrew a fund manager’s status in Singapore because of its failure to comply with certain obligations set by the Monetary Authority of Singapore (MAS).

According to global law firm Morgan Lewis, as a result, the fund manager is no longer permitted to carry on its business in Singapore’s shores.

“The lapses leading to the withdrawal include the failure to do the following: Notify the MAS of changes in particulars, including its place of business, the resignation of its director, and changes to the personal particulars of its director,” Morgan Lewis said.

“[It also failed to] submit an auditor’s report and accompanying financial statement within five months after its financial year end, and comply with and furnish information requested by the MAS,” it added.

Meanwhile, Morgan Lewis added that the decision demonstrates the institution’s willingness to revoke a financial institution’s regulatory status under its supervisory purview.

“This decision is a timely reminder to financial institutions and capital markets intermediaries that operate in Singapore, including fund management companies, broker-dealers and corporate finance advisers, and senior management, of the importance of ensuring compliance with all regulatory and license obligations imposed on them,” Morgan Lewis said.