Unlicensed company director who crowdfunded more than S$15 million for SMEs gets eight-year prohibition order
File photo of the Monetary Authority of Singapore's building in Singapore. (Photo: iStock/TiagoBaiao)
SINGAPORE: The Monetary Authority of Singapore (MAS) has issued an eight-year prohibition order against a former managing director of a company who crowdfunded more than S$15 million without a licence for small- and medium-size enterprises (SMEs).
The order against Nancy Tan Mee Khim, the former managing director of Noble Consulting Group, took effect on May 18.
Under this, she is prohibited from performing any regulated activity or taking part in the management of, acting as a director of, or becoming a substantial shareholder of a holder of a capital markets service firm.
Tan was sentenced to eight months’ jail in June 2020. She appealed against her conviction and sentence, but it was dismissed by the High Court in March last year.
Tan had consented to carrying on a business of dealing in securities without holding a capital markets services licence, MAS said on Monday (Apr 23).
She was the managing director of Noble, which helped small and medium enterprises raise funds from the public, between July 2013 and December 2015.
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“Noble organised multiple seminars, participated in investment exhibitions, created and disseminated marketing materials to potential investors and raised a total of S$15,355,000 from 145 members of the public,” MAS said.
“The Investment or Loan Agreements that the investors entered into with Noble’s client companies were found by the State Courts to be debentures, a form of securities.”
Lenders were promised interest payments of 12 per cent to 28 per cent per year, according to the police in June 2020.
Two SMEs subsequently defaulted on their loans, with more than 100 lenders suffering losses totalling about S$9.5 million.
Individuals who deal in securities and capital market products “must take steps to ensure that they comply with the licensing requirements under the Securities and Futures Act”, said Ms Loo Siew Yee, assistant managing director (policy, payments and financial crime) at MAS.
“MAS’ licensing regime protects members of the public by admitting only fit and proper persons, who must carry out regulated activities in accordance with business conduct and other requirements.
“MAS will take stern action against errant companies and individuals who conduct regulated activities without a licence.”
