The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat
Thursday, 19 January 2017
Last updated 27 min 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.