Quoteworthy: "I probably should have said the acute component of the pandemic phase." — Dr Anthony Fauci, the US government’s infectious disease expert, rolling back earlier comments that the pandemic is over
Singapore’s probe into Noble Group to ‘reach a conclusion’ in 3Q
The multi-year probe into suspected disclosure offences of Noble Group by Singapore authorities is at an “advanced stage” and is expected to “reach a conclusion” in 3Q, says the Monetary Authority of Singapore (MAS).
Up till 2015, Noble was a high-flying Hong Kong-based, Singapore-listed commodities player. It came under short-selling attacks as questions were raised over the valuation of its assets. By the time Noble caved and defaulted, its share price had collapsed by 99%.
In 2018, it was delisted from the Singapore Exchange (SGX), leaving a mark on founder and chairman Richard Elman, who used to be a scrapyard worker. Elman is 82 years of age this year.
Noble tried to restructure its remaining assets into another entity and list the new entity elsewhere but the move was blocked by SGX and MAS. “This followed a review which found that there were significant uncertainties about the financial position of the restructured entity,” says MAS in its enforcement report for the period July 2020 to December 2021, released on April 27.
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Noble’s progress update was among the four major ongoing cases provided by MAS in this latest enforcement report. The other three progress updates are former market darling water treatment company Hyflux, Eagle Hospitality Trust (EHT), a stapled trust that defaulted within months of its listing as well as Hui Xun Asset Management, which was involved in the alleged nickel-trading scam perpetrated by one Ng Yu Zhi.
For Hyflux, its current and former directors, including high-profile founder Olivia Lum, are facing “ongoing” investigations for possible offences under the SFA as well as non-compliance with accounting standards.
The probe was launched on June 2, 2020, with a focus on Hyflux’s disclosure, accounting and auditing issues concerning the Tuaspring Integrated Water and Power Project, which saddled Hyflux with loans it could not pay, hurting retail investors of its perpetual securities. “We are currently working closely with the Attorney General’s Chambers to review the evidence,” says MAS.
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EHT’s listing on the SGX in 2019 rode on a wave of investors’ appetite for REITs and business trusts. EHT’s assets include a portfolio of hotels in the US as well as rights to use a defunct ocean liner, Queen Mary, which was sold into EHT at a valuation of US$159 million. Various entities under EHT began to default on their loan obligations.
EHT’s current and former Singapore-based directors were arrested on Oct 1, 2020, and released on bail. EHT is suspected to have breached disclosure requirements and listing rules. Two USbased individuals, Howard Wu and Taylor Woods, are behind EHT’s sponsor, an entity known as Urban Commons. They were also EHT directors. They remain in the US. “We have also sought assistance from relevant foreign authorities,” says MAS, without elaborating.
The investigation on EHT commenced on June 5, 2020, following a referral by Singapore Exchange Regulation (SGX RegCo). “In view of the number of suspects and the complex issues involved, investigations are still ongoing,” says MAS.
The fourth progress update is related to Ng Yu Zhi, a director of Envy Asset Management and Envy Global Trading. Ng is facing a growing list of cheating charges for allegedly running a nickel trading scam.
Among others, Ng allegedly cheated Envysion Wealth Management (renamed Hui Xun Asset Management) and its CEO Shim Wai Han as well as Finian Tan, CEO of Vickers Partners, a venture capital firm with two of its funds under management invested in the scheme.
MAS is looking into Hui Xun and Vickers Partners to ascertain if there had been governance or risk management failures in their conduct of business. “Investigations are ongoing,” says MAS. “MAS has continued to take robust enforcement actions against errant firms and individuals to safeguard the integrity of our financial sector,” says Peggy Pao, executive director (enforcement) at MAS. “We have also proposed legislative changes to enhance our effectiveness in addressing financial misconduct. We will continue to improve our processes to uphold Singapore’s reputation as a trusted financial centre that takes a tough approach to financial crime and misconduct.”
Elsewhere in the report, MAS says that from July 2020 to December last year, it has imposed $2.4 million in composition penalties for anti-money laundering and counter-terrorist financing control breaches and $150,000 in civil penalties. Twenty prohibition orders were also issued against “unfit representatives”. In the same period under review, MAS and the Attorney-General’s Chambers have successfully secured the criminal convictions of seven individuals for market misconduct or related offences. — The Edge Singapore
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MAS chief: Singapore’s crypto rules must be strict but clear
The head of Singapore’s central bank defended what he called a “stringent” crypto licensing regime, citing risks to retail investors and the potential for digital assets to be used for money laundering and terrorism financing.
Monetary Authority of Singapore (MAS) managing director Ravi Menon, speaking at the Financial Times Crypto and Digital Asset Summit on April 27, also acknowledged that regulators need to provide clarity to the industry. He adds: “The licensing process is stringent… and it needs to be because we want to be a responsible global crypto hub with innovative players, but also with strong risk management capabilities.”
Like many regulators around the world, the MAS is trying to strike a balance between nurturing the fast-growing industry while taming its wilder impulses. But its crypto licensing process has seen just a small fraction of the roughly 170 applicants approved, and a recent directive not to market crypto products to the public caught some companies off guard. MAS has taken a “tough line” on retail investing in crypto “because we’re not sure that’s a good idea for retail investors to be dabbling in cryptocurrencies,” says Menon. “I think many global regulators share similar concerns about retail exposure to cryptocurrencies.”
Menon also says the MAS looks at whether applicants have strong corporate governance structures in place, as well as their track record, adding that “they need to be familiar with money laundering, terrorist financing risks.”
Crypto assets do not currently pose a threat to the financial system, Menon says, instead pointing to money laundering and terrorism financing as the prime risks. That view diverges from those of peers in countries like India, where the central bank has repeatedly cited crypto as a threat to financial stability. — Bloomberg
ABS: Public trust in Singapore banks remains despite Covid-19 uncertainties
The second annual Banking Trust Index for Singapore (BTIS), a survey commissioned by the Association of Banks in Singapore (ABS), showed that public trust in the Singapore banking industry continues to be resilient.
The BTIS, which began last year, is the first standardised means of measuring the public trust in banks in Singapore. It is commissioned by the ABS to understand the level of trust in banks by consumers, and for the association to see where banks can improve on.
The most recent survey was conducted among over 3,500 Singapore residents from Oct 4 to Nov 5 last year, by Edelman Data and Intelligence and involved 15 participating banks. It is conducted annually for participating banks to monitor shifts in customers’ sentiments, solicit feedback and identify areas for improvement over time.
This year, participating banks achieved an over Edelman Net Trust Score (ENTS) of 63 last year, seven points higher than the 56 points recorded in 2020. The ENTS is a 200-point scale that ranges from a score of –100 to 100, representing the sentiments of respondents who have a low trust of banks compared to respondents who trust banks highly.
The higher ENTS score this year is attributable to the banking industry’s commitment to do more for customers.
In the survey, 68% of the 3,500 respondents indicated that they had a high trust in banks, whereas 5% indicated that they had low trust in banks. The ENTS is derived from the difference in these two percentages. The remaining 27% of respondents were neutral in their trust in banks.
ABS also says the higher score was mainly attributable to the banking industry’s commitment to do more in furthering their customers’ interests, as well as its ability to deliver consistent fi-nancial performance, customer-centric solutions and contributions to the community. Respondents also felt that banks could be more forthcoming in demonstrating greater accountability and contributing to local communities.
Respondents also expect banks to continue to strengthen security measures to safeguard customer accounts given the increased digitalisation of the sector. — Felicia Tan
