MAS Reprimands Accel-X Management Pte Ltd for Recurring Late Payments of Annual Fees and Late Regulatory Submissions, and Edmund Yong Kin Kwong for Failure to Discharge the Duty and Function as a Director and Chief Executive Officer

1    On 7 July 2017, MAS reprimanded Accel-X Management Pte Ltd (Accel-X) for its breaches of (i) section 99(A)(1) of the Securities and Futures Act (SFA), (ii) paragraph 5(7J) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations (SFR) and (iii) paragraph 5(7I)(a) of the Second Schedule to the SFR. MAS also reprimanded the company’s Chief Executive Officer (CEO) and director, Mr Edmund Yong Kin Kwong, for misconduct under section 334(2) of the SFA.

2    Section 99(A)(1) of the SFA requires a registered fund management company (RFMC) to pay an annual fee on such date as may be specified by MAS. Accel-X breached section 99(A)(1) of the SFA by failing to pay its annual fees on time in 2014 and 2015 despite repeated supervisory reminders. The payment for its 2014 fees was made more than three months after the payment was due. The payment for its 2015 fees was late for more than two months.

3    Paragraph 5(7J) of the Second Schedule to the SFR requires an RFMC to submit an auditor’s report no later than five months after the end of each of its financial years. Accel-X breached paragraph 5(7J) of the Second Schedule to the SFR as it was late in submitting its annual auditors’ reports and related financial statements for two consecutive financial years in 2014 and 2015. The required documents were submitted six months and three months after they were due in 2014 and 2015 respectively.

4    Paragraph 5(7I)(a) of the Second Schedule to the SFR requires an RFMC to lodge with MAS a notice of change in particulars not later than 14 days after the date of the change. Accel-X breached paragraph 5(7I)(a) of the Second Schedule to the SFR as it notified MAS of changes in its CEO’s directorships more than one and half years after they had taken place. Accel-X also informed MAS of the change in its office address more than five months after it had relocated. The notifications were only made upon prompting by MAS.

5    The recurrence of the late payments and the late regulatory submissions reflects Accel-X’s failure to put in place adequate controls and processes to ensure its compliance with all relevant laws and business rules governing its operations. MAS takes a serious view of such contraventions.

6    Under section 334(2) of the SFA, an officer of an RFMC is guilty of a misconduct if he fails to discharge any duty or function of his office. As the CEO and director of Accel-X, Mr Yong is guilty of misconduct under section 334(2) of the SFA by failing to discharge his duty effectively, which resulted in the company’s recurring non-compliance with applicable rules.

MAS expects all RFMCs and financial institutions to comply with the relevant rules and regulations at all times. Key officers such as directors and CEOs must also carry out the duty and function of their office effectively, including putting in place necessary compliance measures in the financial institutions that they oversee.

Last Modified on 07/07/2017