The Monetary Authority of Singapore (MAS) has imposed nine-year prohibition orders (POs) on Mr. Zhu Su and Mr. Kyle Livingston Davies due to their violations of financial regulations. Both held key positions at Three Arrows Capital Pte Ltd (TACPL), with Mr. Zhu as CEO and Director and Mr. Davies as Chairman and Director.
The POs, which came into effect on 13 September 2023, demand a ban on Mr. Zhu and Mr. Davies from engaging in any regulated activity. Furthermore, they are also prohibited from participating in the management, serving as directors, or becoming substantial shareholders in any capital market services firm under the Securities and Futures Act (SFA).
This action by MAS follows their earlier reprimand of TACPL in June 2022 for various violations, including providing false information, failing to report changes in leadership and shareholdings, and exceeding asset management limits for a registered fund management company.
Further investigations revealed additional violations by TACPL between August 2020 and January 2022. They failed to report hiring a representative within the required timeframe, provided false information to MAS about the representative’s activities, and neglected to establish a proper risk management framework for cryptocurrency and digital asset investments.
As directors of TACPL, Mr. Zhu and Mr. Davies were responsible for ensuring compliance with regulatory requirements, but they failed in this regard, leading to the company’s numerous breaches.
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Ms. Loo Siew Yee, Assistant Managing Director at MAS, highlighted the importance of senior management implementing strong risk management measures in fund management firms to protect investors’ interests. MAS is committed to addressing regulatory violations and directorial neglect displayed by individuals like Mr. Zhu and Mr. Davies.
Earlier, we saw that MAS collaborated with top investment banks like JP Morgan and DBS for Project Guardian, exploring the benefits of asset tokenization. Deputy Prime Minister Heng Swee Keat launched the first pilot, focusing on DeFi in wholesale funding markets, led by DBS, JP Morgan, and Marketnode. The recent MAS’s decisive action reflects its commitment to maintaining Singapore’s financial market integrity and upholding regulatory standards to safeguard investors and the broader financial ecosystem.