SINGAPORE: A two-year prohibition order has been issued by the Monetary Authority of Singapore (MAS) against the executive director of China Capital Impetus Asset Management (CCIAM).
Sun Quan, who is also the former CEO of the fund management company, had failed to take reasonable steps to secure compliance with the Securities and Futures Regulations, said MAS in a media release on Wednesday (Jul 31).
Under the prohibition order, Sun is not allowed to perform any regulated activities. He is also barred from taking part in the management, acting as a director, or becoming a substantial shareholder of any capital markets services firm under the Securities and Futures Act.
“Accordingly, with the repeal of the registered fund management company regime, CCIAM can no longer undertake fund management activity in Singapore with effect from Aug 1, 2024,” said MAS.
“The fund that CCIAM was managing has been placed under liquidation.”
MAS found that the firm committed several breaches of the Securities and Futures Regulations during their review of the company’s operations from February 2023 to March 2023.
It had failed to mitigate conflicts of interest from the management of assets and disclose them to its investors, said MAS.
The company had also failed to put in place an appropriate risk management framework to address basic aspects of the business, such as conducting investment due diligence and pursuing claims owed to the fund managed by CCIAM.
It did not inform MAS of changes to its representatives and relevant professionals, as well as changes in Sun’s external business interests within the required timelines, said MAS. Neither did the firm submit its annual declarations and auditors’ reports on time.
“As the former CEO and the executive director of CCIAM, Mr Sun was principally responsible for ensuring that CCIAM complied with MAS’ regulatory requirements,” said MAS.
“However, MAS found that Mr Sun knew of CCIAM’s breaches, and failed to take adequate steps to ensure that CCIAM complied with MAS’ regulatory requirements.”
Following the breaches, MAS declined CCIAM’s application to upgrade to a licensed fund management company.