Monday, 2 March 2015
Last updated 1 hour ago
Oct 19 2011 | 8:48am ET
The Singapore Monetary Authority has told hedge fund manager Mohamed (Moe) Ibrahim to shutter his Singapore-based firm, 3 Degrees Asset Management, an order the company is challenging.
The rare move by the MAS was motivated by allegations that 3 Degrees had caused one of its three funds—the Asian Debt Fund—to lend US$6.7 million to Apache Assets “for the purpose of channeling the funds to 3 Degrees Capital Ltd, a company controlled by Mr Mohamed Ibrahim,” according to court documents seen by Reuters.
3 Degrees helps manage assets worth $215 million.
MAS decided on May 9 that 3 Degrees and Ibrahim were not considered “fit and proper” to manage funds and announced it would withdraw the company’s “exempt fund manager” status as of November 9.
3 Degrees, in a lawsuit filed in the Singapore High Court this month, challenged the central bank’s decision, saying the loan “was not channelled nor was it ever intended to be channelled to 3 Degrees Cap."
3 Degrees’ lawyers told Reuters that even had such a loan been floated, “such a transaction in itself is neither illegal nor improper and contains no basis for a finding that the plaintiff and/or Ibrahim are not 'fit and proper' persons to carry out business in the regulated activity of fund management.”
Bloomberg, which first reported the story, said 3 Degrees’ appeal of the ruling will be heard in a closed hearing on October 20.
Under Singapore’s Securities and Futures Act, fund managers with fewer than 30 qualified investors are exempt from licensing and business conduct requirements.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…