- The MAS enforces nine-year prohibition orders against Mr Zhu and Mr Davies for breaching securities regulation.
- Uncovered violations include TACPL’s failure to notify MAS of employment changes and fudging info to MAS.
- Lack of a proper risk management framework for crypto and digital asset investments was another folly.
Regulators make the rules for a reason.
They’re not mere suggestions.
Like lines on a football pitch, they frame the game, guiding us towards where we can play and away from where we can’t.
Monetary Authority of Singapore (MAS), this city’s financial referee, blowing the whistle loud on two former executives of Three Arrows Capital Pte Ltd (TACPL), Mr Zhu Su and Mr Kyle Livingston Davies.
MAS reports that security breaches by TACPL, led by Mr Zhu and Mr Davies, has led to hefty penalties.
The Risk of Rule-Breaking
Flinging rules aside is like tossing roadside rubbish over the railings.
It can bring a fine, a public shaming, even jail.
In business, it’s not different.
In fact, it’s more (gloves-off serious).
Run red lights with impunity and soon, you’ll be riding shotgun in a police car.
Ignore regulations, and you’re inviting trouble.
Prohibition orders mean your right to play the game, or even watch from the stands, is snatched away for a long, lonely stretch.
Mr Zhu and Mr Davies felt the sting of this recently.
When Leaders Let You Down
Trust is precious, but fickle.
Like a house of cards, it takes ages to build but can collapse in an instant.
Effective leadership is about keeping that house sturdy.
When leaders forget their roles, the consequences are far-reaching.
Enter Mr Zhu and Mr Davies.
High seat-holders of TACPL.
Failed to keep MAS in the loop when they wheeled in a new portfolio manager.
Even submitted false info to the regulatory body.
Directors, failing to direct.
Senior Managers, mismanaging.
And in doing so, dropped the ball.
Ms Loo Siew Yee, the Assistant Managing Director of MAS, said it best: “MAS takes a serious view of Mr Zhu’s and Mr Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties.”
Cracking Down on Misconduct
MAS isn’t amused.
They mean business when it comes to misconduct.
“MAS will take action to weed out senior managers who commit such misconduct,” says Ms Loo Siew Yee.
Ignoring regulatory requirements is a big no-no for MAS.
They have zero tolerance for mischief makers.
Senior managers are supposed to be guardians of investors’ interests.
Management must bring in robust risk management measures to protect the moolah of these investors.
The watchdog is alert and ready to pounce.
What about Past Foul-Plays?
This isn’t the first time the MAS has blown the whistle.
Huang Mengting felt the brunt of it previously.
The former representative of Prudential Assurance Company Singapore came under fire for creating and submitting bogus invoices to Prudential.
Roped in hubby into the cheap act as well.
Outcome?
Prohibition from financial advisory services and their management, board and substantial shareholder potential nipped in the bud.
Tall tales pushed Prudential to make payouts.
Huang’s slippery tricks didn’t slide past the watchful eyes of the MAS.
Hauled up, convicted and a neat six weeks’ jail sentence to chew on.
You see, lies catch up, eventually.
Gauging the Impact
The blows to TACPL, Mr Zhu, and Mr Davies are hard ones.
Nine long years of being shunned from the financial world is a harsh reality they must face.
Loss of professional reputation.
Tarnished personal credibility.
And let’s not forget the potential financial losses.
The Silver Lining
Rules exist for a reason.
When followed, they maintain order.
Strait jackets that keep chaos at bay.
Ignoring them, or worse, knowingly flouting them, has consequences.
Serious ones.
We live in a world where integrity matters.
Sure, the penalties are harsh, but they serve a purpose.
The MAS is simply doing its job.
Curbing misconduct, protecting investors’ interests.
Isn’t that the way it should be?
On that note, have you ever faced a situation where rules were flouted?
Do share your experiences.
