On 19 March 2020, Nancy Tan Mee Khim (“Nancy Tan”), director of Noble Consulting Group Pte Ltd (“Noble Consulting Group”), was convicted on one charge under Section 82 read with section 331 of the Securities and Futures Act (“SFA”) for consenting to Noble Consulting Group carrying on a business of dealing-in-securities without a capital markets services licence (“CMSL”). She was sentenced to 8 months’ imprisonment on 3 June 2020.
This is the first prosecution under section 82 of the SFA involving crowdfunding activity. Between July 2013 and December 2015, Noble Consulting Group solicited funding for four small and medium enterprises (“the client companies”) in Singapore in exchange for a commission on its services rendered. Noble Consulting Group organised seminars and took part in investment exhibitions and fairs to meet and induce members of the public to enter into loan agreements with the client companies. Nancy Tan, as the director of the company, was actively involved in the business operations of Noble Consulting Group.
Under the loan agreements, the lenders were promised interest payments of 12% to 28% per annum. Noble Consulting Group raised a total of $15,355,000 from more than 150 lenders and earned a commission of 15% of the monies raised for these client companies. When the client companies subsequently defaulted on their loans, over 100 lenders suffered losses totalling around $9.5 million.
At all material times, Noble Consulting Group did not possess a CMSL to carry on the regulated activity of dealing in securities, as required under the law.
Members of the public are advised not to deal with unregulated entities or persons when they come across such investment opportunities. The Monetary Authority of Singapore’s (“MAS”) regulatory framework was put in place to ensure that only competent and professional persons may provide such financial services. If you choose to deal with unregulated entities or persons, you will forgo the protection given under MAS’ regulations.
Before committing to an investment, always Ask, Check and Confirm.
· ASK
ASK as many questions as you need to fully understand the investment opportunity. If the company is unable to, or avoids answering any of your questions, be wary!
· CHECK
CHECK on the company, its owners, directors and management members to assess if the opportunity is genuine
· CONFIRM
CONFIRM the company’s and representatives’ credentials by using available resources, including the Financial Institutions Directory, Register of Representatives and Investor Alert List on the MAS’ website (www.mas.gov.sg).
SINGAPORE POLICE FORCE
03 June 2020 @ 6:00 PM