Nancy Tan Mee Khim Barred from Regulated Activities Following Legal Conviction for Fundraising Without License
SINGAPORE: An eight-year prohibition order has been issued by the Monetary Authority of Singapore (MAS) against a former managing director of a company that crowdfunded over S$15 million for small- and medium-sized enterprises (SMEs) without a license.
This order, affecting Nancy Tan Mee Khim, the ex-managing director of Noble Consulting Group, took effect on May 18. Under its terms, she is barred from engaging in any regulated activities, participating in management, acting as a director, or becoming a substantial shareholder of any capital markets service firm.
In June 2020, Tan received an eight-month jail sentence. Although she appealed her conviction and sentence, the High Court dismissed her appeal in March of the previous year. According to MAS on Monday (April 23), Tan had agreed to operate a business dealing in securities without holding a capital markets services license.
From July 2013 to December 2015, she served as the managing director of Noble, which assisted small and medium enterprises in raising public funds.
“Noble organized numerous seminars, took part in investment exhibitions, produced and shared marketing materials with potential investors, and raised a total of S$15,355,000 from 145 public members,” MAS stated.
The State Courts determined that the Investment or Loan Agreements entered into by investors with Noble’s client companies were classified as debentures, a type of security. According to police reports from June 2020, lenders were promised interest rates ranging from 12 percent to 28 percent annually.
Following the fundraising efforts, two SMEs defaulted on their loans, resulting in over 100 lenders incurring losses amounting to approximately S$9.5 million.
“Individuals involved in securities and capital market products must ensure compliance with licensing requirements as stipulated in the Securities and Futures Act,” said Ms. Loo Siew Yee, assistant managing director (policy, payments, and financial crime) at MAS.
“MAS’ licensing regime safeguards the public by allowing only fit and proper persons to conduct regulated activities in accordance with business conduct and other necessary requirements.
“MAS will take decisive action against any companies or individuals who carry out regulated activities without the necessary licenses.”
