MAS says impact on fund-management industry from investments into Envy entity is 'limited'

THE Monetary Authority of Singapore (MAS) has assessed investments by three licensed fund managers into an entity linked to a S$1 billion fraud scheme, and determined the impact on the fund management industry to be "limited", it said on Monday.

Envysion Wealth Management, Vickers Venture Partners and Sun Hope Capital had invested into Envy Global Trading, one of two entities allegedly used by Singaporean businessman Ng Yu Zhi to swindle investors with nickel deals that did not materialise.

They informed MAS that they did not raise monies from the retail public for the investments, and invested less than S$100 million in total on behalf of fewer than 250 investors. These were accredited investors, institutional investors, employees, shareholders or directors of the fund managers themselves.

The MAS is now conducting supervisory reviews of the fund managers to ascertain if there were any governance or risk-management failures. It said it would "take firm actions where appropriate".

MAS reminded licensed fund managers that they are required to have robust policies and procedures in place for managing risk. These include performing proper due diligence before undertaking investments, addressing and monitoring inherent and concentration risks associated with the assets under their management, and clearly disclosing their investment strategies to investors.

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