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MAS and CAD to jointly investigate all capital markets and financial advisory offences

The Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) of the Singapore Police Force have announced on Tuesday (15 March) that they will extend the Joint Investigations Arrangement to cover all offences under the Securities and Futures Act (SFA) and Financial Advisers Act (FAA).

The authorities stated that this will allow for greater efficiency and more effective enforcement of capital markets and financial advisory offences. The expansion in the scope of the Joint Investigations Arrangement will commence from 17 March 2018.

This arrangement will allow both agencies to consolidate their investigative resources and expertise and further improve the overall effectiveness of market misconduct investigations.

The CAD-MAS Joint Investigations Arrangement was launched in March 2015 , when both agencies collaborated to co-investigate market misconduct offences under Part XII of the SFA, such as market manipulation and insider trading activities.

MAS and CAD announced in 17 March 2015 that they will jointly investigate market misconduct offences such as insider trading and market manipulation under Part XII of the Securities and Futures Act (SFA). This arrangement will enhance the enforcement process as both agencies will collaborate from the outset, bringing about greater efficiency.

Under the arrangement, MAS and CAD will consolidate their investigative resources and expertise, drawing significant synergies from MAS’ role as a financial regulator and CAD’s financial crime investigation and intelligence capabilities, which also allows for greater coordination when formulating enforcement policies in the area of market misconduct.

The arrangement is said to improve the overall effectiveness of market misconduct investigations. MAS officers taking part in the joint investigations are gazetted as Commercial Affairs Officers, giving them the same criminal powers of investigation as CAD officers. Such powers include the ability to search premises and seize items, and to order financial institutions to monitor customer accounts.

The authorities stated that to-date, the joint investigations have secured conviction against three perpetrators of market misconduct.  Several other cases are also before the courts, including persons involved in the alleged manipulation of shares in Blumont Group Ltd, Asiasons Capital Ltd and LionGold Corp Ltd.

The three convictions secured under the joint investigations are Dennis Tey Thean Yang, who was convicted in March 2017, for employing a scheme to defraud two providers of contract for differences, Alan Tay Yeow Kee, who was convicted in May 2017, for insider trading in the shares of Qualitas Medical Group Limited and Leeden Limited, Mok Piak Liang, who was convicted in January 2018, for false trading in the shares of Wilton Resources Corporation Limited.