The Monetary Authority of Singapore (MAS) has imposed nine-year prohibition orders on Zhu Su and Kyle Livingston Davies, former senior executives of Three Arrows Capital Pte Ltd (TACPL). The orders, effective from September 13, 2023, were issued for multiple violations of the Securities and Futures Act 2001 (SFA) and Securities and Futures (Licensing and Conduct of Business) Regulations (SFR).
The prohibition orders restrict Zhu and Davies from participating in any regulated activities and bar them from holding directorship or substantial shareholding in any capital market services firm under the SFA. This action follows MAS’s reprimand of TACPL in June 2022 for providing false information, failing to notify changes in directorship and shareholdings, and exceeding the permissible assets under the management threshold for a registered fund management company.
MAS’s subsequent investigation revealed additional contraventions committed by TACPL between August 2020 and January 2022. These included the failure to notify MAS about the employment of Cheong Jun Yoong Arthur as a portfolio manager and the provision of false information regarding his employment. Moreover, TACPL lacked an appropriate risk management framework for cryptocurrency and digital asset investments.
Loo Siew Yee, the Assistant Managing Director for Policy, Payments & Financial Crime at MAS, offered remarks on the situation, saying:
MAS takes a serious view of Zhu’s and Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties. MAS will take action to weed out senior managers who commit such misconduct.
As directors of TACPL, Zhu, and Davies were held accountable for these regulatory lapses. The investigation concluded that they had failed in their duty to ensure the company’s compliance with regulatory obligations, leading to the imposition of the nine-year prohibition orders.
Earlier this year, the MAS announced the finalization of a regulatory framework for stablecoins, aiming to ensure a high degree of value stability for these digital assets. This move was part of Singapore’s broader strategy to regulate emerging financial technologies and maintain a robust financial ecosystem. The framework was developed after a public consultation in October 2022 and took into account the feedback received.
