SINGAPORE - Less than $100 million was invested in Envy Global Trading (EGT) by licensed fund managers and fewer than 250 investors were involved, said the Monetary Authority of Singapore (MAS) on Monday (June 28).
The commodities trading company's director Ng Yu Zhi, 34, was arrested in February over nickel deals that never took place. He is alleged to be involved in a $1 billion fraud scheme.
He had 18 charges against him for cheating, fraudulent trading and forgery. On Monday, he was handed another 13 similar charges.
In response to media queries on these further charges, the MAS said the licensed fund managers that had invested in EGT were Envysion Wealth Management, Vickers Venture Partners (S) and Sun Hope Capital.
"The fund managers have represented to MAS that no monies were raised from the retail public. Investments into EGT were made only on behalf of accredited investors, institutional investors, employees, shareholders or directors of these fund managers," said an MAS spokesman.
"The total amount of funds invested by these fund managers on behalf of investors amounted to less than $100 million and involved fewer than 250 investors."
The MAS spokesman added that the impact on the fund management industry has been assessed to be limited.
The authority said it is conducting supervisory reviews of these licensed fund managers to find out if there were governance or risk management failures and that it will take firm action where appropriate.
It said earlier that it requires licensed fund managers to have robust policies and procedures to manage risks - including performing proper due diligence before taking on investments, and addressing and monitoring inherent and concentration risks associated with the assets under their management.
Fund managers are also required to clearly disclose their investment strategies to investors - a rule which the MAS said is consistent with those in other reputable jurisdictions.