Three Arrows Capital reprimanded by MAS for providing false information, exceeding AuM

Lavina Daryanani
Source: EuroMoney

The Monetary Authority of Singapore reprimanded Three Arrows Capital, 3AC today because of false information, failure to notify them about changes, and exceeding the AuM threshold. The MAS had been investigating the hedge fund since June last year.

Three Arrows Capital in more trouble

In 2013, the MAS had granted Three Arrows Capital registered status under the conditions that the worth of its assets remained under S$250 million.

“In August 2013, TAC obtained its RFMC status which allowed it to carry on fund management business with no more than 30 qualified investors and manage assets of no more than S$250 million.”

Per the latest release, the authority noted that the company breached its AuM threshold several times. One between July and September 2020, and the other, between November 2020 and August 2021.

The MAS has also reprimanded the hedge fund for its failure to notify changes to directorships and shareholdings. The regulatory authority has further contended that 3AC failed to inform it about the common shareholder of Three Arrows Capital’s offshore entity, Su Zhu, who is also the company’s director.

Also, it is worth recalling that a British Virgin Islands court had ordered the liquidation of 3AC recently. The court made its filing on 27 June. Per people from the community, the liquidation would mark a turning point in the crypto industry’s ongoing disintegration that has been accelerating of late.

Factoring in the same, the MAS revealed that it’s still assessing if the company crossed any other line or not.

“In light of recent developments which call into question the solvency of the fund managed by TAC, MAS is assessing if there were further breaches by TAC of MAS’ regulations.”

As highlighted in an article yesterday, the insolvency of the Singapore-based company will be handled by partners from Teneo Restructuring. On its part, Teneo’s main job is to protect the assets of 3AC.