SINGAPORE: The Monetary Authority of Singapore (MAS) and the Commercial Affairs Department of the Singapore Police Force (SPF) have launched an investigation into various companies under CoAssets Ltd for possible regulation breaches.
The joint investigation stems from complaints and feedback received from members of the public regarding suspected misconduct by CoAssets’ companies, said a joint statement by MAS and the police on Monday (Feb 1).
Of the CoAssets group of companies, only CA Funding is regulated by MAS, as a capital markets services licensee.
In March last year, MAS issued a direction to CA Funding to “prohibit the company from listing new issuances, onboarding new investors and accepting subscription of securities”.
These directions were issued after MAS’ inspection uncovered lapses at the Singapore-based crowdfunding platform, including credit assessment process and inadequate disclosure of information to investors.
“MAS also directed CA Funding to appoint an independent external auditor to review the effectiveness of its remedial measures to address these deficiencies,” the statement said.
However in early December, it was revealed that the company had transferred about S$40 million of its borrowings to a small debt recovery firm called Sunfits, according to a report by Tech In Asia.
The Hong Kong-based Sunfits then informed investors it could not collect on the debt as there was no “visibility” on any of the assets.
In the same month, CA Funding informed MAS it had failed to comply with the minimum base capital requirement under the Securities and Futures Act and intended to cease operations, said the joint statement.
It added that all investors’ money held by CA Funding have since been returned and MAS is closely monitoring the company’s “implementation of its cessation plan, to ensure that investors are treated fairly”.
CoAssets had started as a crowdfunding site for real estate in 2013.
The group later switched business models and set up subsidiaries, issuing loans known as promissory notes to investors.
Promissory notes are debt instruments that allow companies to receive financing from sources other than a bank.
MAS, police investigate companies under CoAssets Group Source link MAS, police investigate companies under CoAssets Group