Benzinga - Singapore's Monetary Authority (MAS) has imposed a stringent nine-year prohibition order on the founders of Three Arrows Capital, Zhu Su and Kyle Livingston Davies.
This decision comes after the duo was found in violation of the Securities and Futures Act 2001 (SFA) and the Securities and Futures (Licensing and Conduct of Business) Regulations (SFR).
This development is expected to be a significant topic of discussion at Benzinga's Future of Digital Assets conference on Nov. 14, where industry experts will delve into the evolving dynamics and challenges of the cryptocurrency world.
Zhu, who served as chief executive officer and director, and Davies, the chairman and director of Three Arrows Capital Pte Ltd (TACPL), are now barred from undertaking any regulated activity.
Furthermore, they are prohibited from participating in the management, acting as directors, or holding substantial shares in any capital market services firm under the SFA.
This action by MAS follows its reprimand of TACPL in June 2022 for several infractions, including providing false information to MAS and failing to notify changes in directorship and shareholdings of Zhu and Davies.
Subsequent investigations into TACPL and its directors revealed additional contraventions between August 2020 and January 2022.
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Notably, TACPL did not inform MAS within the stipulated timeframe about the employment of Cheong Jun Yoong Arthur as a portfolio manager.
Furthermore, in January 2022, TACPL falsely claimed to MAS that Cheong had not engaged in any regulated activity, despite evidence to the contrary.
Additionally, TACPL lacked a comprehensive risk management framework for overseeing risks related to cryptocurrency and digital asset investments.
As the primary directors of TACPL, both Zhu and Davies were accountable for ensuring the firm's adherence to regulatory standards under the SFA and SFR.
MAS's investigation concluded that they had neglected their responsibilities, leading to TACPL's regulatory breaches.
Loo Siew Yee, Assistant Managing Director at MAS, commented on the matter, stating, "Senior management of fund managers are required to implement robust risk management measures to protect the interest of investors."
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