The Monetary Authority of Singapore ("MAS") withdrew V Wealth Capital Pte Ltd's status as a Registered Fund Management Company ("RFMC") with effect from 20 May 2016. V Wealth will no longer be allowed to carry out fund management activities in Singapore.The decision was made as V Wealth had failed to comply with the following requirements:Failure to notify MAS of,change of its principal place of business;resignation of its director; andchange to the personal particulars of its director.Failure to submit an auditor's report and the accompanying financial statements. Failure to furnish to MAS information requested by MAS via the written directions issued.Registered Fund Management Companies ("RFMCs") and even more Licensed Fund Management Companies ("LFMCs") have specific reporting obligations.Annual reports: LFMCs must provide annual reports, together with an auditor's report, within five months after the end of the financial year. RFMCs must submit annual declarations within one month after the end of each financial year and an auditor's report within 5 months after the end of the financial year.Quarterly reports: LFMCs must submit quarterly reports within 14 days after the end of every quarter.Notification regarding changes in the company: LFMCs and RFMCs must notify MAS of specific changes in the company's particulars within 14 days after the occurrence of the change.Notification regarding CEO and directors: LFMCs must only appoint a CEO or director or change that nature of the appointment of a director from one that is non-executive to one that is executive after the approval by MAS. Similarly MAS must be notified of the resignation of a director to Authority within 14 days of the resignation.Notification regarding representatives: LFMCs must notify MAS of the intent to appoint representatives before the representative becomes active and must also notify of any changes in the particulars of the representative within 14 days after the occurrence of such change as well as additional regulated activities of the representative and finally the cessation of the activities of the representative. Moreover, LFMCs must notify MAS not later than 14 days after the discovery of the misconduct by the LFMC.In addition, notifications must be made upon the cessation of the business.Although companies may not consider their reporting obligations to be crucial, MAS' action against V Capital clearly demonstrates the importance of regular reporting to the MAS for fund management companies in particular, to notify MAS of any material changes. The MAS expects senior management of financial institutions to ensure the financial institutions' compliance with the relevant laws and regulations applicable to them. The institution's failure to comply may result in a penalty or even the revocation of license.
