Singapore, 7 March 2024… The former Chief Executive Officer (CEO) of Envysion Wealth Management Pte Ltd (Envysion), currently known as Hui Xun Asset Management Pte Ltd, Ms Shim Wai Han, and its former directors (former Chief Investment Officer, Mr Doo Chun Ki and former Chief Operating Officer and Chief Compliance Officer, Mr Tan Kay Siong) were charged in court today for offences under the Securities and Futures (Licencing and Conduct of Business) Regulations (SF(LCB)R) and the Securities and Futures Act (SFA). Envysion was a holder of a capital markets services licence for fund management and manager of the Envysion Global Investments VCC which established the Envysion Commodity Strategy Fund (Fund).

2. MAS’ investigations found that Ms Shim, Mr Doo and Mr Tan had allegedly connived in Envysion’s failure to put in place an appropriate risk management framework in respect of the assets under management of the Fund. Ms Shim, Mr Doo and Mr Tan had also allegedly connived in Envysion’s failure to mitigate conflicts of interest related to loans received by Ms Shim and referral fees received by Envysion for investing into a company Envy Global Trading Pte Ltd through the Fund.

3. Details of the charges against the individuals are as follows:

Ms Shim Wai Han, former Chief Executive Officer

1. One count of regulation 13B(1)(a) of the SF(LCB)R read with section 331(1) of the SFA for conniving in Envysion’s failure to put in place an appropriate risk management framework for the Fund.
2. One count of regulation 13B(1)(e) of the SF(LCB)R read with section 331(1) of the SFA for conniving in Envysion’s failure to mitigate conflicts of interest arising from the management of the assets in respect of the Fund.
3. One count of section 26(1)(c) of the Financial Advisers Act (FAA) for making false statements in connection with the provision of a financial advisory service.
4. Two counts of section 5(1) of the Official Secrets Act (OSA) for forwarding email correspondence between MAS and Envysion, to Ng Yu Zhi, a former director of Envy Global Trading Pte Ltd.

Mr Doo Chun Ki, former Chief Investment Officer

1. One count of regulation 13B(1)(a) of the SF(LCB)R read with section 331(1) of the SFA for conniving in Envysion’s failure to put in place an appropriate risk management framework for the Fund.
2. One count of regulation 13B(1)(e) of the SF(LCB)R read with section 331(1) of the SFA for conniving in Envysion’s failure to mitigate conflicts of interest arising from the management of the assets in respect of the Fund.

Mr Tan Kay Siong, former Chief Operating Officer and Chief Compliance Officer

1. One count of regulation 13B(1)(a) of the SF(LCB)R read with section 331(1) of the SFA for conniving in Envysion’s failure to put in place an appropriate risk management framework for the Fund.
2. One count of regulation 13B(1)(e) of the SF(LCB)R read with section 331(1) of the SFA for conniving in Envysion’s failure to mitigate conflicts of interest arising from the management of the assets in respect of the Fund.

4. If convicted, they face the following punishment:

1. For each charge under regulation 13B(1)(a) of the SF(LCB)R read with section 331(1) of the SFA, a fine of up to $50,000.
2. For each charge under regulation 13B(1)(e) of the SF(LCB)R read with section 331(1) of the SFA, a fine of up to $50,000.
3. For each charge under section 26(1)(c) of the FAA, imprisonment for a term of up to 12 months, or a fine of up to $50,000, or both.
4. For each charge under section 5(1) of the OSA, imprisonment for a term of up to 2 years and a fine of up to $2,000.

***

Additional Information:

Securities and Futures (Licencing and Conduct of Business) Regulations (SF(LCB)R)

Regulation 13B(1)(a) SF(LCB)R
Regulation 13B(1)(a) of the Securities and Licencing and Conduct of Business) Regulations states that “Without prejudice to regulation 13, the holder of a capital markets services licence for fund management shall put in place a risk management framework (that identifies, addresses and monitors the risks associated with assets under its management) which is appropriate to the nature, scale and complexity of the assets.”

Regulation 13B(1)(e) SF(LCB)R
Regulation 13B(1)(e) of the Securities and Licencing and Conduct of Business) Regulations states that “Without prejudice to regulation 13, the holder of a capital markets services licence for fund management shall mitigate conflicts of interest arising from the management of assets and, where appropriate, disclose such conflicts of interest to the customer concerned.”

Securities and Futures Act (Chapter 289) (SFA)
Section 331(1) SFA
Section 331(1) of the Securities and Futures Act (Chapter 289) states that “Where an offence under this act committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of an officer of the body corporate, the officer as well as the body corporate shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.”

Financial Advisers Act (Cap 110, 2007 Rev Ed) (FAA)
Section 26(1)(c) FAA
Section 26(1)(c) of the Financial Advisers Act (Chapter 110, 2007 Rev Ed) states that “A licenced financial adviser shall not make a false or misleading statement in connection with the provision of any financial advisory service, if, when he makes the statement he knows or ought reasonably to have known that the statement is false or misleading.”

Official Secrets Act (Chapter 213, 2012 Revised Edition) (OSA)
Section 5(1) OSA
Section 5(1) the Official Secrets Act (Chapter 213, 2012 Revised Edition) reads: “If any person having in his possession or control any secret official code word, countersign or password, or any photograph, drawing, plan, model, article, note, document or information which…(d) has been entrusted in confidence to him by any person holding office under the Government…, (i) communicates directly or indirectly any such information or thing as aforesaid to any foreign Power other than a foreign Power to whom he is duly authorised to communicate it, or to any person other than a person to whom he is authorised to communicate it or to whom it is his duty to communicate it;… that person shall be guilty of an offence.”