Singapore: Financial services regulatory updates

MAS issues prohibition order against a former representative of a fund management company for conviction of fraud or deception

On 24 September 2024, the Monetary Authority of Singapore (MAS) issued a 5-year prohibition order (PO) against a former representative of a fund management company, Nech Capital Pte Ltd (NCPL). The PO was issued following the representative’s conviction in the State Courts for engaging in a course of business that operated as fraud under the Securities and Futures Act 2001 (SFA). The former representative is prohibited from performing any regulated activity and from taking part in the management, acting as a director, or becoming a substantial shareholder, of any capital markets services firm under the SFA.

Between 4 January 2019 and 24 July 2020, the former representative worked as a trader at NCPL where his responsibility was to trade using NCPL trading accounts to make a profit for a fund managed by NCPL. He executed trades in several securities counters between NCPL trading accounts and accounts belonging to his relatives. His trades were conducted in a manner that profited him (controlling his relatives’ accounts) at the expense of NCPL. On 25 April 2023, he was convicted of one count of section 201(b) of the SFA (fraud or deception), with two other counts of section 201(b) of the SFA taken into consideration for the purpose of sentencing. He was sentenced to five weeks’ imprisonment and a fine of S$120,000. Following this, MAS issued the PO on him.

Major retail banks to introduce Singpass face verification so as to strengthen resilience against phishing scams

On 18 September 2024, MAS and the Association of Banks in Singapore (ABS) today announced that major retail banks in Singapore will progressively implement Singpass Face Verification (SFV) over the next three months to strengthen the digital token (DT) setup process for retail banking customers.

SFV will be triggered in higher risk scenarios to strengthen and complement existing authentication methods for DT setup. SFV uses a face scan to verify a customer’s identity against national records before the customer’s DT can be activated for use. This makes it more difficult for a scammer to take over a customer’s DT by setting it up on his own device using phished credentials such as an SMS, one-time passwords (OTPs) and/or bank card information.

The use of SFV is the latest security measure that banks are rolling out to protect customers from scams. Other initiatives and self-help tools include the phasing out of OTPs for bank account login by DT users and the Money Lock feature, through which customers can “lock up” specified amounts of their funds that cannot be accessed digitally.

MAS reprimands a CEO and director of a formerly registered insurance broker for breaches conducted by the formerly registered insurance broker under the Insurance Act 1966 (IA)

On 10 September 2024, MAS reprimanded a CEO and director of a formerly registered insurance broker, Acesynergy Brokers Pte. Ltd. (ABPL) for breaches conducted by the formerly registered insurance broker under the IA.

On 24 July 2024, MAS cancelled ABPL’s insurance broker registration following its breaches of MAS’ regulatory requirements, registration condition and written directions. MAS had found significant weaknesses in ABPL’s management oversight, and accounting and compliance processes, which resulted in ABPL’s breaches of MAS’ regulatory requirements and registration condition. ABPL also failed to comply with MAS’ written directions to remediate MAS’ inspection findings and appoint an independent external person to review its remediation measures.

The CEO and director was responsible for ensuring ABPL’s compliance with MAS’ regulatory requirements, registration conditions and written directions. MAS found that he was aware of ABPL’s breaches. Despite MAS’ repeated engagements with him, he failed to take adequate measures to prevent ABPL from committing the breaches.

MAS issues prohibition order (PO) against a former representative of a securities firm following his false trading offences

On 3 September 2024, MAS issued a 5-year PO against a former representative of RHB Securities (Singapore) Pte. Ltd. The PO was issued following the former representative’s conviction in the State Courts for offences under the Securities and Futures Act 2001 relating to false trading in the shares of Catalist-listed Koyo International Limited (Koyo).

Under the PO, the former representative is prohibited from providing any financial advisory service, and from taking part in the management, acting as a director, or becoming a substantial shareholder, of any financial advisory firm under the Financial Advisers Act 2001. He is also prohibited from performing any regulated activity and from taking part in the management, acting as a director, or becoming a substantial shareholder, of any capital markets services firm under the Securities and Futures Act 2001.