SINGAPORE: The Monetary Authority of Singapore (MAS) announced on Thursday (Dec 12) that it has revoked the Capital Markets Services Licence of CT Bright Investment (CTBI).
The revocation took effect on Monday. As such, CTBI is no longer permitted to carry on business in fund management in Singapore, said MAS.
For a company to conduct activities regulated under the Securities and Futures Act, it has to hold a Capital Markets Services Licence.
The revocation of CTBI's CMS Licence was due to "numerous breaches of MAS’ rules, licence conditions, and failure to comply with MAS’ written direction", according to MAS' media release.
According to MAS, CTBI did not start any fund management activities within six months of receiving its licence, and did not seek an extension as required by regulations.
Despite repeated reminders addressed to CTBI and its CEO Tanawat Wansom, the company also failed to lodge numerous regulatory returns under the Securities and Futures Act and Securities and Futures (Financial and Margin Requirements) Regulations.
Upon further investigation, MAS found that CTBI failed to notify it of the resignation of one of CTBI's two directors in early 2018. The director was also CTBI's relevant professional and appointed representative.
As a result, CTBI also failed to meet the minimum competency requirements for licensed fund management companies of having at least two directors, relevant professionals and appointed representatives.
In view of the breaches, MAS then issued a written direction to CTBI, addressed to its CEO, to explain the reason for the breaches of its regulatory obligations and licence conditions.
It also directed CTBI to put in place internal controls to prevent a recurrence of these breaches. However, CTBI and its CEO did not respond or comply with the written direction.
“MAS does not tolerate such wilful disregard of MAS’ regulatory expectations and directions," said Mr Lee Boon Ngiap, Assistant Managing Director (Capital Markets) of MAS.
"In spite of repeated attempts to reach out to CTBI and the CEO, the firm remained unresponsive. MAS will take stern action against financial institutions that do not abide by MAS’ directions, and will revoke the licences of financial institutions that are not serious about carrying on regulated activities.”