MAS rebukes registered fund manager for non-compliance to licensing rules

A two-year prohibition order was also issued to its executive director for failure to ensure the company’s compliance.

The Monetary Authority of Singapore (MAS) has reprimanded China Capital Impetus Asset Management (CCIAM) for breaches of the Securities and Futures (Licensing and Conduct of Business) Regulations (SFR).

MAS has also issued a two-year Prohibition Order (PO) against CCIAM’s executive director and former CEO, Sun Quan, for failing to ensure CCIAM’s compliance with the SFR.

Under the PO, Sun is banned from regulated activities, management roles, directorships, or substantial shareholding in any capital markets firm under the Securities and Futures Act.

In addition, MAS has denied CCIAM’s application to become a licensed fund management company (LFMC) due to contraventions by CCIAM and Sun.

The breaches committed by CCIAM include failure to:

• Mitigate conflicts of interest arising from the management of assets and/or disclose the conflicts of interest to its investors;
• Put in place an appropriate risk management framework to address basic aspects of the business such as conducting investment due diligence, ongoing monitoring of investments, handling of redemptions, and pursuing claims owed to the fund managed by CCIAM;
• Inform MAS of changes to its representatives and relevant professionals, as well as changes in Sun’s external business interests, within the required timelines; and
• Submit its annual declarations and auditors’ reports within the required timelines.

Starting 1 August, CCIAM can no longer undertake fund management activities and the funds previously managed by CCIAM have been placed under liquidation.