Sat. Nov 28th, 2020

Regulation HK

Financial Regulator

MAS Revokes Fund Manager’s CMS Licence for Regulatory Breaches

2 min read

The CMS licensee is a Singapore company set up by CT Bright Holdings Limited, a joint investment vehicle formed by Thai conglomerate CP Group and Japan’s ITOCHU Corporation.

MAS (Monetary Authority of Singapore) has revoked the capital markets services licence of CT Bright Investment.

The revocation was the result of “numerous breaches of MAS’ rules and licence conditions”, in addition to CT Bright’s failure to respond to or comply with the regulator’s written directions to address the breaches and strengthen its internal controls.

In particular, CT Bright did not commence fund management activity within six months of licence issuance, and also did not seek an extension from MAS for the commencement of its fund management business, as required by the regulator.

The company also failed to lodge numerous regulatory returns despite repeated reminders from MAS.

In addition, CT Bright failed to inform MAS on the resignation of one of its two directors, who was also its relevant professional and appointed representative, in early 2018. This also resulted in the company’s failure to meet the minimum competency requirements for licensed fund management companies to have at least two directors, relevant professionals and appointed representatives.

CT Bright and its CEO, Tanawat Wansom, did not respond to or comply with the MAS’ written direction seeking an explanation.

“MAS does not tolerate such wilful disregard of MAS’ regulatory expectations and directions,” said assistant managing director Lee Boon Ngiap.

“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.”

The revocation took effect from Monday (9 December), following which CT Bright is no longer permitted to carry on business in fund management in Singapore.

A statement of enforcement action is available here.

CT Bright appears to be a Singapore company set up by CT Bright Holdings Limited, a joint investment vehicle formed by Thailand’s largest conglomerate CP Group and Japan’s ITOCHU Corporation.

Leave a Reply

Your email address will not be published. Required fields are marked *