CoAssets Situation Explained: MAS and CAD Launch Joint Investigation into CoAssets Group
1 February 2021 Update: CAD and MAS Launch Joint Investigation Into CoAssets Group
The Commercial Affairs Department (CAD), and the Monetary Authority of Singapore (MAS) announced that they have launched a joint investigation into various companies under CoAssets Ltd (CoAssets Group Companies) for possible offences under the Penal Code (Cap. 224) and the Securities and Futures Act (Cap. 289) (SFA).
Out of this group, the spotlight is being shone on Singapore based peer-to-peer lending (P2P)/Crowdfunding lending platform CA Funding Private Limited (CAFPL): a capital markets services license that is regulated by MAS.
This development comes on the back of an announcement by CAFPL on its website on 4 January 2021 that it will be shutting down:
MAS added that it will be ‘closely monitoring’ CAFPL’s cessation plans to make sure that investors who invested on CAFPL’s platform are treated fairly.
Prior to this, MAS has directed CAFPL to return its customers’ money; adding that ‘all customers’ money held by the company have since been returned to investors.’
Here are more details of the repayment process.
CA Funding Promissory Notes Repayments
According to CAFPL, its Promissory Notes (PN) investors rights are protected under Clause A of the security deed states that:
“Under the PN, Chargor is required to pay to the Payees (whether directly or through the intermediary) certain sums on or by the stipulated dates).”
In addition, Under Clause 4.3 of the Promissory Note, it states that:
“Payment shall be made by the Issuer via bank transfer into one account maintained with a local bank as may be notified by CAFPL to the Issuer. For avoidance of doubt, all of the Issuer’s obligations under this Note to any and all of the Payees shall be discharged upon payment of the relevant sums into such account. The Issuer shall be entitled to require presentation of the Promissory Note prior to payment. For the avoidance of doubt, the obligation to pay under this Note shall only be deemed to be discharged upon the bank transfer having cleared and the amounts payable being received in the bank account notified by CAFPL on the relevant Payment Date, Early Redemption Date or another applicable date.”