On 19 August 2024, the Monetary Authority of Singapore (MAS) today announced the issuance of a one-year prohibition order (PO) against Mr. Aw Jun Ray, Reko Corinthians, a former representative of HSBC Bank. The PO, which takes effect immediately, prohibits Mr. Aw from engaging in any financial advisory services and participating in the management, directorship, or substantial shareholding of any financial advisory or capital markets services firms regulated under the Financial Advisers Act (FAA) and the Securities and Futures Act (SFA).
The enforcement action against Mr. Aw is grounded in strict legislative provisions that govern the conduct of financial advisory professionals in Singapore. Under Section 32(2)(b) of the Financial Advisers Act 2001, any individual who, in connection with their principal’s lodgment of any document, omits to state any matter or thing that results in the document being misleading in a material respect, is guilty of an offence. The penalty for such an offence includes a fine of up to $50,000. Similarly, Section 99O(2)(b) of the Securities and Futures Act 2001 outlines that individuals who fail to disclose material information, leading to a misleading document, are liable to the same penalty. These provisions are designed to ensure transparency and maintain the integrity of the financial advisory and capital markets sectors.
The MAS’s decision to impose a prohibition order on Mr. Aw reflects the gravity of non-disclosure and the critical importance of honesty in the financial sector. Individuals holding positions of trust and responsibility, such as financial advisors, are expected to adhere to the highest standards of conduct. The failure to disclose material information, particularly when it pertains to criminal investigations and conditional warnings, not only undermines the trust placed in these individuals but also poses a significant risk to the integrity of the financial system.
The swift and decisive action taken by MAS serves as a stern reminder that those entrusted with the responsibility of managing financial services must operate with complete transparency. The consequences of failing to do so are severe, as demonstrated in Mr. Aw’s case. This action also reinforces the message that regulatory authorities will not hesitate to remove individuals who are deemed unfit from the industry to protect the broader financial ecosystem.
The case of Mr. Aw Jun Ray Reko Corinthians highlights the imperative for all financial advisors, including those operating within the cryptocurrency space, to remain vigilant and fully aware of their legal obligations. As the regulatory landscape continues to adapt to new financial technologies, crypto financial advisors must ensure they operate within the bounds of the law, maintaining transparency and integrity in all their dealings. Violations of trust and non-disclosure can lead to severe repercussions, not only for the individual advisor but also for the broader financial ecosystem. Upholding the highest standards of conduct is essential to preserving the credibility and trust that clients place in financial advisors, particularly in the complex and often volatile world of cryptocurrency.
The prohibition order against Mr. Aw Jun Ray Reko Corinthians establishes the important role of regulatory oversight in maintaining the trust and integrity of Singapore’s financial and ensures that the highest standards of honesty and transparency are upheld, thereby safeguarding the interests of all stakeholders within the industry.
