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Key Observations from Enforcement Cases

The cases concluded during this reporting period reveal common enforcement themes. These themes highlight the standards applicable to financial institutions (FIs) and individuals, including licensing obligations, fit and proper criteria and acceptable business conduct, the behaviours and failures that give rise to enforcement action, and the consequences of failing to meet those standards.

Licence Revocations for Fundamental Non-Compliance

Compliance with the applicable regulations is a fundamental condition of conducting licensed activities in Singapore. MAS licences are granted on the basis that FIs are able to operate in a sound, compliant and responsible manner.

When an FI may no longer be fit to hold a licence:
  • Breaches of key regulatory obligations
  • Repeated failures to remediate identified deficiencies timely
  • Providing false or misleading information to MAS to evade supervisory oversight

Cases at a glance

MAS revoked three licences[1], demonstrating the seriousness with which MAS treats fundamental non-compliance:

Xen Capital Asia

Did not comply with MAS’ regulatory requirements and licence conditions, including failing to put in place a compliance function that commensurate with the nature, scale and complexity of its capital markets services business.

One Heritage Capital Management

Failed to meet capital requirements and submit quarterly returns relating to its capital markets services business, despite multiple reminders from MAS to rectify the breaches. This hindered MAS’ ability to supervise its financial soundness and evidenced a lack of accountability to MAS.

Bsquared Technology

Had significant weaknesses in risk management and serious conflicts of interest in its digital payment token services business. On multiple occasions, the entity also submitted false or misleading information, demonstrating its inability to meet basic standards of honesty.

NOTES:
[1] Where necessary, MAS would issue written directions to ensure that the FIs take steps to: (a) give sufficient notice to investors and customers regarding the cessation of business; and (b) ensure that all outstanding liabilities to customers have been settled.
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