The Monetary Authority of Singapore (MAS) has issued nine-year prohibition orders (POs) against Mr Zhu Su and Mr Kyle Livingston Davies for contraventions of the Securities and Futures Act 2001 (SFA) and Securities and Futures (Licensing and Conduct of Business) Regulations (SFR). Mr Zhu was the Chief Executive Officer and Director of Three Arrows Capital Pte Ltd, while Mr Davies was the Chairman and Director.

Under the POs, which took effect from 13 September 2023, Mr Zhu and Mr Davies will be prohibited from performing any regulated activity and from taking part in the management of, acting as a director of or becoming a substantial shareholder, of any capital market services firm under the SFA.

Following MAS’ reprimand of 3AC in June 2022 for (i) providing false information to MAS; (ii) failing to notify MAS about changes to Mr Zhu’s and Mr Davies’ directorship and shareholdings; and (iii) exceeding the assets under management threshold allowed for a registered fund management company, MAS has conducted further investigations into 3AC, Mr Zhu and Mr Davies.

The regulator uncovered additional SFA and SFR contraventions committed by 3AC between August 2020 and January 2022:

• Failure to notify MAS of employment of representative: Between August 2020 and September 2021, 3AC employed Mr Cheong Jun Yoong Arthur to be a portfolio manager, to perform fund management activities on behalf of 3AC. In breach of the SFR, 3AC failed to inform MAS within the required timeframe of Mr Cheong’s employment.
• Provision of false information to MAS: In January 2022, 3AC falsely represented to MAS that 3AC had not notified MAS about Mr Cheong’s employment because he did not carry out any regulated activity. In fact, Mr Cheong had performed fund management activity on 3AC’s behalf between August 2020 and September 2021.
• Failure to have in place appropriate risk management framework: 3AC did not have in place a risk management framework to identify, monitor, and address risks associated with the cryptocurrency and digital asset investments under its management.
• As directors of 3AC, Mr Zhu and Mr Davies were primarily responsible for ensuring that 3AC complied with regulatory requirements under the SFA and SFR. MAS’ investigation showed that they had failed to discharge their duties and were responsible for 3AC’s breaches.