Singapore’s primary monetary authority administers a 9-year ban to Three Arrows Capital’s co-founders, Kyle Davies and Zhu Su.
The regulatory directive encompasses a prohibition on their engagement in overseen financial activities. Additionally, It includes their occupation of top executive roles within Singapore’s financial establishments.
Furthermore, the Monetary Authority of Singapore (MAS) has taken decisive action against Kyle Davies and Zhu Su. However, this is due to alleged contraventions of the nation’s securities regulations. These allegations are linked to their co-establishment of the cryptocurrency-oriented hedge fund, Three Arrows Capital (3AC).
MAS Imposes Nine-Year Ban on Three Arrows Founders Su and Davies
On the 14th of September, MAS issued a declaration. In it, they specified that Su and Davies would face a nine-year prohibition. This ban began on the 13th of September. Alongside this, a comprehensive embargo was imposed.
Additionally, It includes their disqualification from administering, serving as directors, or holding substantial stakes in any capital market service enterprises based in Singapore.
In providing an explanation for these punitive measures, MAS disclosed that they uncovered further instances of securities law breaches. This discovery came to light during their comprehensive inquiry into the now-insolvent 3AC and its founders.
MAS also asserted that Su and Davies failed to apprise the central banking authority regarding 3AC’s appointment of a new corporate representative. Additionally, they dispensed erroneous information to the regulatory body. Furthermore, they inadequately established an effective risk management framework.
MAS’s Resolve: Expelling Senior Executives for Regulatory Negligence
Loo Siew Yee, MAS’ Assistant Managing Director of Policy, Payments, and Financial Crime, expounded, “MAS regards Mr. Zhu’s and Mr. Davies’ manifest disregard for MAS’ regulatory stipulations and their abandonment of their directorial responsibilities with utmost seriousness.”
She appended, “MAS is committed to expunging senior executives who engage in such misconduct.”
In June, MAS began investigating Three Arrows Capital for possible rule violations. This investigation revealed several wrongdoing, leading to the issuance of exclusion orders as punishment.
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