The Monetary Authority of Singapore (MAS) has joined forced with the Singapore Police Force to investigate fintech group of companies Coassets.
They allege possible offences under the Penal Code and the Securities and Futures Act (SFA).
The investigation was prompted by complaints and feedback received from members of the public about “suspected misconduct” by the group of companies.
Of all the firms falling under the Coasset Group umbrella, only CA Funding (CAF) is regulated by the MAS and holds a capital markets services licence.
The business started winding down procedures on 4 January 2021.
CAF received a prohibition order from the regulator in March 2020, banning it from “listing new issuances, onboarding new investors and accepting subscriptions of securities”.
The measure was taken after the MAS uncovered lapses in the firm’s credit assessment process, as well as inadequate information to investors, and failure to address conflicts of interests since CAF had issuers listed on its platforms whose entities were dealing with Coassets Group.
Business cessation plan
As a result, the watchdog instructed the company to appoint an independent external auditor to “review the effectiveness of its remedial measures to address these deficiencies”.
The regulator added: “CA informed MAS in December 2020 that it had failed to comply with the minimum base capital requirement under the SFA and intended to cease operations. Pursuant to directions issued to CAF by MAS, all customers’ moneys held by CAF have since been returned to investors.
“MAS is closely monitoring CAF’s implementation of its cessation plan, to ensure that investors are treated fairly.”
A statement on the firm’s website says: “We have been receiving a lot of queries from crowdfunding investors following the latest announcement on the CA Funding platform on 4 January 2021.
“We wish to reassure investors that CAF is still operating and will continue to address all queries from customers, and service customers on their outstanding investments. Specifically, the services CAF will continue providing are as follows:
- Receiving repayments from issuers and making them to the investors;
- Monitoring repayments due from issuers;
- Taking steps to collect overdue amounts should there be a delay or default on the part of the issuers; and,
- Addressing queries from investors on the status of their outstanding investments, etc.
“We are in the process of working out a business cessation plan. Broadly, the cessation plan will cover how customers can expect services to continue after CAF ceases business and we will share details before any cessation commences.”