• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

MAS' investor alert list (IAL) – What happens to the companies after they get on the list?

by onlinecitizen
01/08/2019
in Finance
Reading Time: 5 mins read
0

Monetary Authority of Singapore (MAS) logo signage on the building at entrance (Photo by mimisim from Shutterstock.com)

by Lim Hui Ming (Division Head, Alternative Wealth Management, CoAssets) & Ngoi Weng Kit (Marketing Executive)
As an online funding platform licensed by the Monetary Authority of Singapore (MAS), we constantly keep a keen eye on developments in the Singapore funding market. As a platform, we at CoAssets, frequently come across companies that try to raise funds directly from members of the public. While most of them do it legally, occasionally see some who do it in a less than compliant manner.
Whenever investors ask us whether a potential deal is good, the first thing we will ask them to do is to check the MAS’s Investor Alert List (IAL). The IAL is a list of unregulated persons who, based on information received by MAS, may have been wrongly perceived as being licensed or regulated by MAS. The list is not exhaustive and is updated regularly by the regulators.
While MAS does not assert that the companies on the IAL are dubious, the question some investors may have is what happens to companies on the list? How many of them continue to operate and how many have stopped operation?
To help answer some of these questions, we conducted some research to find out more. At this point, we wish to highlight that the data for this article is based on information extracted from MAS’s website in May 2019. This article is not meant to be conclusive and it is written to provide readers with some of our observations.
Observation 1: Overseas companies VS Local companies – equal treatment by the regulator
Based on data downloaded in May 2019, we found that there was a total of 477 companies on the IAL. 242 of the companies were locally registered while 235 were incorporated overseas. – this works out to be about an equal distribution of local and overseas companies. From this information, it tells us that the regulator is equally stringent when it comes to overseas companies that come to Singapore to conduct regulated financial activities.
This is understandable as MAS’s main focus is to protect Singaporean investors. Hence, as long as companies, whether overseas or locally incorporated, try to raise funds in Singapore, they will be subjected to the same regulatory framework.
Observation 2: Locally incorporated companies on the IAL
With reference to the 242 local companies, a search was done with the Accounting and Corporate Regulatory Authority (ACRA). As at May 2019, 52 companies on the list was active and 190 companies had ceased operations – this works out to be a winding-up rate of 78.5%. It is worth noting that the winding-up rate may potentially be higher – this is because some of the 52 active companies may not currently have operations or maybe in the process of being wound up.
Simplistically speaking, the figures seem to imply that investors who invest in companies on the IAL have a 78.5% chance of seeing the company cease operations. Depending on when they invest and the terms of the investments, it indicates a high likelihood that most investors would not be able to get their money from an IAL company back.
It is also interesting to observe that quite a number of companies listed on the IAL were not operating in accordance with what was registered with ACRA. To provide an anecdotal example, there was a local IAL company that dealt with cryptocurrency transactions but was registered as a firm that was in the ‘Development of Web Portals’. Thus, some investors may want to use such inconsistency as a potential “red flag”.
Observation 3: Foreign incorporated companies on IAL
Out of the 225 overseas companies, a similar search was done and we found that 182 of them were inactive. This works out to be a winding-up rate of 81.0% – which is comparable to the local figures of 78.5%. In terms of foreign incorporate companies, some of them were found to have licenses to operate in their home countries. Importantly, this means that not all financial licenses issued by overseas regulators are fungible and accepted by MAS. Therefore, investors may wish to be careful when they deal with companies that claim to be regulated abroad and check if they are licensed to conduct regulated financial activities in Singapore as well.
Observation 4: Spike in IAL companies in 2016 and 2017
Out of the total of 477 companies, we were able to deduce the date of listing for 329 and there was insufficient data to make a determination for the remaining 148 firms. Based on the 329 companies, as per Figure 1, there appears to be a spike of companies being added onto the IAL in 2016 and 2017.

Coincidentally, it was around this time when the MAS, Securities Investors Association and national financial education programme MoneySENSE ran the “Santa Quay” campaign where a fictional investment property scheme was used as a way to educate investors of potential scams.
Putting things in the correct perspective, readers may wish to note that MAS mainly relies on public feedback to identify companies that conduct unlicensed financial activities. A company would only be put on the IAL after MAS has conducted a thorough investigation and sufficient documentary evidence was collected. Thus the spike in 2016 and 2017 seems to suggest that the media outreach during that period was effective, as more investors were becoming aware and the whistle blew on suspicious companies.
Conclusion
While the IAL is definitely a very useful resource to help investors identify potential “bad actors” in the fundraising and alternative investment space, the list is by no means exhaustive. Investors are strongly encouraged to conduct their own due diligence to understand the company and the product before making an investment.
Apart from checking the IAL, investors may also want to check if the company is licensed by MAS for its regulated activities. In addition, investors may want to understand how the companies/products generate their returns and the various risks associated with the investment. Lastly, investors should also look at protection or recourse in the unfortunate event of investment failure.
While following these simple guidelines does not mean that investors will always be successful in their investment, at the very least, it should considerably lower the likelihood (and heartache) of a bad investment.

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.

Related Posts

One pilot dead after Vietnamese military fighter jet crash
AFP

One pilot dead after Vietnamese military fighter jet crash

31/01/2023
Japan and NATO pledge ‘firm’ response to China, Russia threats
AFP

Japan and NATO pledge ‘firm’ response to China, Russia threats

31/01/2023
Japanese junior high school sprinter breaks another record in prefectural race
Japan

Japanese junior high school sprinter breaks another record in prefectural race

31/01/2023
Malaysia PM stressed the need for people to be allowed to effectively and actively participate in civil society
Malaysia

Malaysia PM stressed the need for people to be allowed to effectively and actively participate in civil society

31/01/2023
Million-dollar overpayments made by various ministries, public agencies highlighted in sampled audit by Auditor-General Office amongst various lapses
International

Singapore ranked least corrupt country in Asia, fifth in the world

31/01/2023
China angered by new Czech president’s Taiwan call
AFP

China angered by new Czech president’s Taiwan call

31/01/2023
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
0 Comments
Inline Feedbacks
View all comments

Latest posts

One pilot dead after Vietnamese military fighter jet crash

One pilot dead after Vietnamese military fighter jet crash

31/01/2023
Japan and NATO pledge ‘firm’ response to China, Russia threats

Japan and NATO pledge ‘firm’ response to China, Russia threats

31/01/2023
Japanese junior high school sprinter breaks another record in prefectural race

Japanese junior high school sprinter breaks another record in prefectural race

31/01/2023
Malaysia PM stressed the need for people to be allowed to effectively and actively participate in civil society

Malaysia PM stressed the need for people to be allowed to effectively and actively participate in civil society

31/01/2023
Million-dollar overpayments made by various ministries, public agencies highlighted in sampled audit by Auditor-General Office amongst various lapses

Singapore ranked least corrupt country in Asia, fifth in the world

31/01/2023
China angered by new Czech president’s Taiwan call

China angered by new Czech president’s Taiwan call

31/01/2023
过去五年  四成上班族曾遭性骚扰!仅30%受害者举报

Grassroots leader jailed for duping fellow volunteers to engage services from his own wife and firm

31/01/2023
Myanmar junta prepares for poll, raising fears of more bloodshed

Myanmar junta prepares for poll, raising fears of more bloodshed

31/01/2023

Trending posts

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

by Yee Loon
30/01/2023
17

...

Two Indian nationals paid about S$330 and S$730 respectively for forged certificates submitted in their S-Pass application

MOM found issuing EPs meant for foreign PMETs to PRC waitress and general worker

by Correspondent
26/01/2023
41

...

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

by Yee Loon
26/01/2023
24

...

Ho Ching breaks silence over Temasek’s write down of its US$275 million investment in FTX, says it “can afford to be contrarian”

US regulator questions VCs’ due diligence work prior to investing in FTX; Ho Ching says Temasek can afford to be contrarian

by The Online Citizen
24/01/2023
28

...

Indian rupee falls 60% since signing of CECA while Singapore becomes top investor in India

by Correspondent
25/01/2023
60

...

Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

by The Online Citizen
26/01/2023
54

...

August 2019
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Jul   Sep »

The Online Citizen is a regional online publication based in Taiwan and formerly Singapore’s longest-running independent online media platform.

Navigation

  • Editorial
  • Commentaries
  • Opinion
  • Politics
  • Community

Support

  • Contact Us
  • Letter submission
  • Membership subscription

Follow Us

  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Fact Checking Policy
  • Privacy Policy

© 2022 - 2023 The Online Citizen Asia

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2022 - 2023 The Online Citizen Asia

wpDiscuz