Singapore Police Force and MAS Launch Joint Investigation into CoAssets Group Companies

​The Monetary Authority of Singapore (MAS) today announced that the Commercial Affairs Department (CAD) of the Singapore Police Force and MAS has jointly investigated various companies under CoAssets Ltd for possible offences pursuant to Cap. 224, the Penal Code and Cap. 289, the Securities and Futures Act (SFA). The joint investigation arises from complaints and feedback filed by members of the public in respect of alleged misconduct by CoAssets Group Companies.   

Of the CoAssets Group Companies, CA Funding Pte Ltd (CAFPL) is the only MAS regulated capital markets services licensee. However, in March 2020, MAS ordered the prohibition of CAFPL from listing issuances, onboarding investors and accepting subscription of securities, following an inspection which revealed lapses in CAFPL's credit assessment process as well as the company's inadequate disclosure of information to investors. Additionally, CAFPL failed to address conflicts of interests stemming from dealings that the CoAssets Group Companies had with entities related to issuers that CAFPL had listed on its platform. In addition to prohibition, MAS required CAFPL to name an independent external auditor to review the effectiveness of its remedial measures and address the deficiencies.

In December 2020, CAFPL informed MAS of its failure to comply with the minimum base capital requirement under the SFA and its intention to cease operations. In accordance with directions issued to CAFPL by MAS, all customers' funds held by CAFPL have since been returned to investors. The Singapore regulator is now closely monitoring CAFPL's implementation of its cessation plan to protect investors from being treated unfairly.