MAS reprimands Three Arrows Capital over two violations

It provided false information to the MAS and exceeded the AUM threshold.

Hedge fund Three Arrows Capital Pte. Ltd. (TAC) was reprimanded by the Monetary Authority of Singapore (MAS) over violations of the Securities and Futures Act 2001 (SFA) and the Securities and Futures (Licensing and Conduct of Business) Regulations (SFR).

According to MAS, TAC lied about novating the management of its fund to an unrelated offshore entity in the British Virgins Islands.

MAS said the “unrelated offshore entity” had a common shareholder with TAC, Su Zhu, who also happens to be a director of TAC.

Providing false information to the MAS is a contravention of Section 329(1) of the SFA.

The authority also slammed TAC for failing to notify them of changes to its directorships and shareholdings.

TAC was also found exceeding the assets under the management (AUM) threshold. The hedge fund can only manage assets of no more than $250m.

“TAC exceeded its allowable AUM of S$250 million for an RFMC between July 2020 and September 2020 and between November 2020 and August 2021,” the MAS said.

Following TAC’s violations, MAS said it will assess if TAC commuted further its regulations.